Best high yield savings account for emergency fund?

[DaveSimmons]

Best I know of is Netspend. It gives 5% upto $5000 but you won't find it difficult to open at least 2 accounts if you have a friend. Make sure you set up automated transfers to pull the interest out and put money in (to avoid fees).

See this post for instructions:
https://www.fatwallet.com/forums/finance/1432026/

That's only $25 a year, again with hoops.

If you have almost no money and/or lots of free time these hoop-deals might be attractive, but this is ATOT where it's not worth getting out of bed for less than a six-figure salary 🙂

 

[blinblue]

that's only $25 a year, again with hoops.

If you have almost no money and/or lots of free time these hoop-deals might be attractive, but this is atot where it's not worth getting out of bed for less than a six-figure salary 🙂

0.05*$5000=$250

 

[Red Squirrel]

Credit line + some kind of locked investment maybe. If emergency comes up put it on credit (that's what it's for) and if you can't pay it off in a timely fashion you can always wait till you can unlock the investment. Maybe GICs or something.

 

[tortoise]

For those that have the temperament for high-yield investing . . include real estate crowdfunding in your research.

 

[DaveSimmons]

0.05*$5000=$250

D'oh! Yes, $250 will be worth hoop-jumping for some people. Much more so than $25.

 

[alcoholbob]

Funny how in your post you claim a ridiculous return in a 1-yr window.

Do you also realize that you lose value when selling at spot price? Gold is not the place to put cash for your emergency fund.

I put an smiley emoticon next to it, indicating I was merely poking fun at the high return this year. It seems like you are getting really emotional about this topic. You might want to consider some ways to relieve stress in your life.

 

[freeskier93]

I get 0.95% with my Discover account. Savings accounts aren't the place for long term growth, but if your're going to have a good chunk of emergency money on hand just sitting there it's stupid to write off potential earnings. 0.95% is at least noticeable at $100 a year on a $10k deposit. It's better than a poke in the eye.

 

[freeskier93]

Credit line + some kind of locked investment maybe. If emergency comes up put it on credit (that's what it's for) and if you can't pay it off in a timely fashion you can always wait till you can unlock the investment. Maybe GICs or something.

Most common emergency situation is losing your job. Living on credit for multiple months with no income is a great way to fuck yourself financially. At best you're throwing a fair amount of money down the drain in interest. Likely whatever interest you would make having that money sitting in a locked higher rate account will be nullified by the interest you would have to pay by carrying the same amount on a credit card.

There's only one good use for credit cards, IMO, and that's to build credit for larger home and vehicle purchases.

 

[TridenT]

Most common emergency situation is losing your job. Living on credit for multiple months with no income is a great way to fuck yourself financially. At best you're throwing a fair amount of money down the drain in interest. Likely whatever interest you would make having that money sitting in a locked higher rate account will be nullified by the interest you would have to pay by carrying the same amount on a credit card.

There's only one good use for credit cards, IMO, and that's to build credit for larger home and vehicle purchases.

Yeah, I'm definitely not putting $10k+ on credit either... Not like I could. I have limited history and it'll likely always be that way since I don't get car loans.

 

[dullard]

Most common emergency situation is losing your job. Living on credit for multiple months with no income is a great way to fuck yourself financially. At best you're throwing a fair amount of money down the drain in interest. Likely whatever interest you would make having that money sitting in a locked higher rate account will be nullified by the interest you would have to pay by carrying the same amount on a credit card.

Try showing us the math and seeing the full options (such as opening a loan not using credit cards with your investment as collateral) before claiming things like that (heck even just try the math and then don't show us here once you realize that you are not correct).

The most common emergencies are usually $2000 or less (new car engine or at least a running beater car, new furnace, meeting your health care deductible, replacing a good chunk of a roof or a wall of siding, etc). Very, very few people have the luxury of putting enough money aside to truly weather a complete loss of income. You are talking many tens of thousands of dollars when it is hard for people to save just $500. Plus, unemployment insurance really helps there.

The real solution is saving $2000 and then getting the right insurances to make certain that almost no emergency costs you more than that.

 

[Muse]

There's only one good use for credit cards, IMO, and that's to build credit for larger home and vehicle purchases.

Can you explain? They appear to me a convenient way to pay for most everything, including monthly recurring bills, Paypal, Amazon, stores... I use a CC instead of cash or a check whenever I can.

 

[Svnla]

Reward checking accounts are the way to go.

I have several right now and 3% - 4% APY rates are not too shabby.

If you are too lazy to do some work on the reward checking accounts requirements, stick the money on an online passive savings account.

 

[Svnla]

<snip>
There's only one good use for credit cards, IMO, and that's to build credit for larger home and vehicle purchases.

Wrong.

Wrong.

Wrong.

CC's can be use to earn cold hard cash back or miles or points or other benefits.... "IF" you can handle them properly, ie, no carry over balance and pay on time, each and every time.

<<<---- is earning a few hundreds dollars per MONTH from cash back.

 

[edro]

<<<---- is earning a few hundreds dollars per MONTH from cash back.

Same.

Life is much simpler when everything is charged to a credit card AND you get a couple thousand bucks back a year AND it is fraud protected.

 

[Crusty]

I put an smiley emoticon next to it, indicating I was merely poking fun at the high return this year. It seems like you are getting really emotional about this topic. You might want to consider some ways to relieve stress in your life.

Quit trolling

 

[madoka]

Banks don't give enough interest to make it worth your while.

You might as well wait for another sale on a high end trash can and put your money in there.

 

[PricklyPete]

I've given up putting away emergency funds in a savings account. All my extra money is invested. I now have an unused HELOC on my primary residence where I have instant access to low interest funds just a click away. This gives me a buffer on when I would liquidate investments timing wise.

 

[jeffrey]

Ally's savings account is sitting at 1.00% and their money market is 0.85%.

That's where my E.F. is.

Ally would be a solid choice, 1% and no hoops.

 

[s0me0nesmind1]

2 types of accounts:

Standard "higher" yield savings accounts.

Checking accounts with special privileges that give you ~2-3% APR Yield on your first ~$10,000 if you make ~10 debit card purchases that month.

Personally, I hate debit cards. I socked away my funds in Discover Online savings accounts thanks to their $300 promos. I have absolutely zero qualms with them, and they have 0.95% APR. I'm just going to keep it in there unless they start to REALLY fall behind. Just keep it out of the big banks (Citi, Wells Fargo, BoA, Chase).

 

[s0me0nesmind1]

Same.

Life is much simpler when everything is charged to a credit card AND you get a couple thousand bucks back a year AND it is fraud protected.

The problem is if it will be sustainable or not. We are entirely dependent upon others being retarded and paying the ridiculous 18 - 25% APR Interest rate month to month.

Since churning has turned into a hobby that is growing with lots of people joining in, I don't foresee this lasting very long.

 

[freeskier93]

Can you explain? They appear to me a convenient way to pay for most everything, including monthly recurring bills, Paypal, Amazon, stores... I use a CC instead of cash or a check whenever I can.

To clarify, I put everything on a credit card because the rewards and fraud protection are nice. I would still consider the main benefit is to quickly build credit (of course by paying it off every month). My main point is just don't carry a balance, 15-20% APR is highway robbery. As mentioned above a better option is a personal loan if you're really in trouble.

 

[DaveSimmons]

The problem is if it will be sustainable or not. We are entirely dependent upon others being retarded and paying the ridiculous 18 - 25% APR Interest rate month to month.

Since churning has turned into a hobby that is growing with lots of people joining in, I don't foresee this lasting very long.

My credit cards only give me 1%-3% cash back, but it's free money for things I was already going to buy like my Netflix subscription and Newegg purchases. I pay off my balances every month so I pay 0% interest on the purchases.

The $100-300 teaser sign up bonuses for new cards might or might not continue, but I'm too lazy to bother with those anyway. I've had the same cards for 10+ years now.

 

[Imp]

CC's can be use to earn cold hard cash back or miles or points or other benefits.... "IF" you can handle them properly, ie, no carry over balance and pay on time, each and every time.

<<<---- is earning a few hundreds dollars per MONTH from cash back.

I also use my credit card, almost exclusively, responsibly.

However, I wouldn't call it "earning." The retailers more than likely jack up their prices corresponding to the charges payment processors charge. So, it's more like you get a partial refund -- better than getting no refund.

 

[Svnla]

I also use my credit card, almost exclusively, responsibly.

However, I wouldn't call it "earning." The retailers more than likely jack up their prices corresponding to the charges payment processors charge. So, it's more like you get a partial refund -- better than getting no refund.

Do your stores/retailers/sellers/etc. give you discounts if you pay in cash? Mine neither so I pay with my 2% everyday cash back card with no limit for almost everything under the sun (a few places only take cash or check). Last time I check 2 >>>>>> 0.

The problem is if it will be sustainable or not. We are entirely dependent upon others being retarded and paying the ridiculous 18 - 25% APR Interest rate month to month.

Since churning has turned into a hobby that is growing with lots of people joining in, I don't foresee this lasting very long.

Nothing in life is for sure except death and taxes. I rather get 2% plus other benefits (2x the manufacturers warranty, prices roll back, free car rental insurance, and on and on) from my credit cards than nothing from cash/check.

 

[Red Squirrel]

Most common emergency situation is losing your job. Living on credit for multiple months with no income is a great way to fuck yourself financially. At best you're throwing a fair amount of money down the drain in interest. Likely whatever interest you would make having that money sitting in a locked higher rate account will be nullified by the interest you would have to pay by carrying the same amount on a credit card.

There's only one good use for credit cards, IMO, and that's to build credit for larger home and vehicle purchases.

Oh yeah loosing job is a bit more involved as there is no income immediately in sight and you don't know what will happen next. I was talking more about stuff like car breaking down or furnace breaking down, stuff that you know you can pay off, but don't have the cash on hand immediately. Of course if you have the cash for those things it's better to use that cash.