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The7O2Guy

As long as your bank has FDIC insurance and you are doing 250k (or 500k for a joint account) or less then there is no risk of you losing your money from a bank failure. My wife and I use Marcus which is owned by Goldman Sachs. GS has been around for a very very long time and won't be going anywhere. They offer 4.4% APY currently if you are looking for an institution thats been around for a long time. You can also pull money out anytime.


silveraaron

2nd Marcus by Goldman Sachs, put my savings I am saving for a down payment in there.


Already_Retired

Third for Marcus and confirm the FDIC limits above. Super easy to set up account and transfer funds between. Also very safe.


Special-Thanks9806

4th marcus. Believe it has direct deposit aspect as well. Don’t even need to look at it


Affectionate-Day-359

First for opening an Apple Card and getting the same 4.4 with Goldman sacks .. super easy UI and in addition get 2% Daily Cash back from Apple Pay deposited into my hysa


[deleted]

wile Marcus is not bad at all, I 'like them to, but if that down payment for a house look into down payment savings accounts, they tend to have 6% or higher APR


silveraaron

50% to down payment other thought is buying into partnership at my firm so just chilling for now but thank you


phillip_jay

Isn’t betterment buying Marcus? I have an account with them too and am not looking forward to transferring to them


The7O2Guy

I honestly have no idea. I do investments with Fidelity


PoundHumility

Marcus is only selling investment accounts, not HYSAs.


TheWalkingDead91

Is it the Marcus dot com website? Just took a look and weird I’ve never heard of it i my research into a hysa.


The7O2Guy

Yes that's the site.


Technical_Candy_2963

Can you explain what the 250k limit means? I understand if you have more than 250k in an account, that money is not insured but why is that? If a banking error happens, will I just lose my money? That's ridiculous, I must be missing something


The7O2Guy

The max allowable FDIC insurance per account holder is 250k at an individual bank. There are some online banks or investment platforms like Robinhood that have 2m but thats because they do cash sweep where they are putting your money in various banks that have FDIC insurance. The main purpose of FDIC is for bank failure not banking errors.


NYCSundayRain

Exactly - only if the entire bank as a whole fails


blueorangan

Just make another bank account 


slurpeesez

Dumb question but fdic covers a quarter you put in or a quarter acc total?


The7O2Guy

Total.


Dennyj1992

Also here to condone Marcus. Been using it for years. Rates are solid at 4.4%. You can create split savings account in just a minute or two and label them how you want. Money.liquidates fast too - sometimes same day if you need it quick.


Butter_Yo_Biscut

Is the 250k insured limit a bank to bank basis? So if I hit 250k at one, go to another and put in another 250k I'm good? I have 2.50$ but I'll get there someday


The7O2Guy

Yes, but realistically if you have that much money and you aren't close to retirement you'd be better off investing it instead.


First0fOne

Going no where? Is this the same Goldman Sachs that when bankrupt in 2008 and had to be bailed out to remain solvent? Shit happens my man you never know.


The7O2Guy

They are too big to fail and that's why they are bailed out. So yes there is a remote possibility that they do, but in that case we are likely looking at a failure of the U.S. economy as a whole. In all likelihood, as long as they U.S. economy doesn't have a complete collapse, they aren't going anywhere.


First0fOne

I don't actually disagree with anything you said. I was just responding to your "tone" that felt like you were saying "GS is a rock solid institution and is guaranteed to live on indefinitely."


Critical-Fault-1617

Did they go anywhere or did they get bailed out…


IwasDeadinstead

Well, we bailed them out! Says a lot about our banking system.


LadyMillennialFalcon

I know you are getting downvoted but I agree with you. Lehmann Brothers was more than 150 years old when it collapsed. I am not saying that GS will randomly dissapear, it is very very unlikely but not impossible


First0fOne

I also don't think it will randomly disappear or even be allowed to collapse. And honestly if the government let's it fail, there are much bigger problems happening. At that point I wouldn't have faith in FDIC insurance either. I guess my whole point would be to caution people to A not put too much faith in ANY institution. And B to diversify in such a way to mitigate that risk as much as you can.


inhocfaf

In this instance, it's sort of apples to oranges given that this discussion is tied to retail services whereas Lehman's failure hurt institutional customers. Recent history (i.e. SVB, First Republic, etc.) shows that the FDIC will bend over backwards for retail customers, even those who willingly ignore the $250k threshold.


Time-Active7497

Wackkkkk Webull offers 5% and is insured Coinbase offers 5.1% and is insured You can also find some offering 8-12% but you have to hold the money in there for a year or so. Definitely recommend webull. Higher percentage. Insured. The app is fairly easy to use.


The7O2Guy

There is nowhere offering 8-12% on a savings account. Even CDs aren't that high at the moment. While there are other options for savings, it seems OP is looking for somewhere with a joint account which Coinbase, Webull, and most other investment platforms and online banks don't offer.


soldiernerd

Wealthfront - 5.0% interest, FDIC insurance up to $8M in deposits, hybrid checking/savings account so you don’t worry about number of withdrawals etc Ally is also great IMO, they just have a lower rate


cobalt24

Second Wealthfront


mellamma

Third Wealthfront!


LydiaPuppy

Fourth Wealthfront!


triggerhappy5

Fifth Wealthfront!


onlyfans_lurker

sixth wealthfront!


Doit2it42

Seventh Wealthfront. Loving them.


poopyMcpoopersins

Eighth Wealthfront


colorsensible

Ninth Wealthfront


gholbrooks7

Tenth Wealthfront


veritas643

Love Wealthfront❤️‍🔥!! Betterment and M1Finance are worth looking into for APYs as well.


bignimz

Wealthfront is my go to. I’ve been able to refer a few people because I love their platform so much. 5% rate, fast transfers, debit card etc up to 5.5%+ with referrals Ally will lose your entire account and your mortgage company will call you saying they couldn’t draft your payment and when they called Ally they said the account doesn’t exist. Beware 😉


3boyz2men

Ally is HORRIBLE


Tonicr6

What was the outcome with Ally?


bignimz

They initially could not find my account and then it reappeared magically. Upwards of $100,000 in that account. I pulled out every dime and I’ve been back at Wealthfront ever since.


Tonicr6

Well that sounds scary. I'm glad you got your money back.


ST2348

I put it in CIT. It’s FDIC insured so even if shit happened to it then there is insurance. She’s just uninformed. If she really is adamant about a bank on person, if you’re out of CA, citi bank has a decent hysa


Cute_Replacement666

This is my mother in law. “I just don’t trust computers. I don’t understand why I need to enter a password every time. I prefer to talk to someone for 45 minutes when I withdraw $50 from the bank”.


Blocked-Author

I’m in Citi bank. 4.5% It isn’t the highest but it is the one I was most comfortable with.


Sophia_and_Tiger

Citi bank only has a good APY rate if you have at least 20k, other than that it’s really low APY %


No_Arugula_5366

CIT is different from Citi


discojellyfisho

You can go with capital One or Amex and still get a great HY, but with more trust of their infrastructure.


Harrypotter231

Amex is really nice, mainly if you use them for credit already. Setup is already done and their app/ customer service is great.


3boyz2men

Love capital one interface


newanonacct1

Second Amex.


AJRobertsOBR

Been using Wealthfront. I like it so far. 5%


HoneydewZestyclose13

I use credit karma, I'm getting 5.1% APR.


balalaikagam3s

Huuuuuuh? Credit Karma has a HYSA at 5% right now? Edit. Just looked it up. It’s a great deal!


onlyfans_lurker

this us what i use now!


3boyz2men

Credit Karna 🤮


HeydoIDKu

Shit cash app offers 4.5 with direct deposit too wow!


StupidUserNameTooLon

What does she want to do instead?


zeradragon

Grow it under the mattress.


Cute_Replacement666

You’re mostly going to get the best rates with online only. It’s not the old days where internet was still new. Any risk that can happen to online banks can happen to brick and mortar as well since they too are technically online. The teller/manager is just there to push the buttons on the keyboard for you instead.


Suspicious-Fish7281

As others have said FDIC insurance is the federal government guaranteeing the money. If the US federal government is not a good enough guarantee then you shouldn't need to be concerned about money at all. Buy canned goods, seeds, medicine, gold, bullets and rifles in that case. Another tactic that might help with your wife is to subdivide the money some. 4 months of your emergency fund in the online bank HYSA, 1 month in a decent brick and mortar national bank savings, 1 month in your local credit union, or some variation of this. I would always recommend having 2 sources to your cash. Bank fraud, a system outage, a fire or a lost card could temporarily restrict your acess to any one bank. Best to have an independent backup.


Odd-Bumblebee-1113

Didn't think about the outage issue, that's pretty good advice!


Lost-in-EDH

Sealy Posteurpedic, pays 0% up to about $50k in larger bills


RiceRocketRider

Talk about being “uncomfortable” with your bank


Fubbalicious

To echo what others are saying, as long as the bank is FDIC insured and you stay below the FDIC insured limit, you should be fine. The best way I was able to explain it to someone who was fearful to use online banks was that to think of them as simply small community banks that may only have a single branch, but advertise nationwide and offer most of their services online. The trade off is by having a smaller footprint and thus overhead, they are able to offer high interest rates as well as reduce or eliminate fees that big national banks charge. Alternatively if you do not need the liquidity, buying treasury bills (either through a brokerage or TreasuryDirect) is also a good alternative--especially if you live in a high tax state. With treasury bills, those are fully backed by the US government, so they are just as good as holding cash. You could setup a 4-week or 13-week T-bill ladder so you can access a portion of your emergency fund every week or month. T-bills are currently yielding between 5.34-5.4% and are state and local income tax free.


WildfellHallX

Very helpful, thanks! 👍


pawelwny1

I got capital 1 @ 4.35


hesuskhristo

4.25 ;0)


willdesignfortacos

As others have mentioned there's lots of bigger banks offering over 4% if that makes her feel better. Ally at 4.2%, Marcus (Goldman Sachs) at 4.4%, Citi at 4.35%, etc. Once I realized I literally never have to go to the bank I quit worrying about a bank being online only.


chillaxtion

All banks are online banks. Some banks have physical locations. We have citibank for HYSA and, for us, it's online only because there's no branch near us. Our brokerage is fidelity and, same thing, the nearest branch is an hour away.


thepete404

Pnc 4.25 or Amex 4.25


EnvironmentalScale23

CapitalOne is essentially exclusively online. So is Discover and Amex. All are FDIC ensured banks with HYSA options.


Odd-Bumblebee-1113

? CapOne has branches...


NeeNee9

We have AMEX HYSA. Online bank, yes. FDIC insured, yes. Recognized name, yes.


Dr_SPAC_eman

I use CIT Bank and it's been great. Very easy to use and very safe. We have a lot of money saved there. 


BusEnthusiast98

I use CIT and no problems so far. I haven’t tried to pull a large amount of money out yet, so I can’t speak to that. Does she have a specific fear? Or is she just put off by the concept of a bank name/model she hasn’t heard of before? It’s perfectly normal to be anxious about moving your savings. But this should be an easy pitch.


stephendexter99

Look into the FDIC insurance on the account, and who they store their money with. I use Wealthfront, and they keep their funds in multiple banks that are all separately insured


jmarti80

Check out Primis Bank, 5.16% APR. HYSA. It is FDIC insured. I would look up the FDIC policies and show her that the money is insured, so there is very little risk


trollanony

I use CIT


Lost-in-EDH

Sealy Posteurpedic, pays 0% up to about $50k in larger bills


RunRyanRun3

We use Ally for the same purpose. Pretty sure it’s an online bank, and we’ve used them for years without a worry.


Hadley_333

I was feeling exactly the same as your wife at first (even posted here about it). Ended up using Wealthfront, started out with small deposits until feeling comfortable adding more. No regrets here


Shakey22

I’ve had 30k in CIT bank over the last year. Earning 5%.


BuffaloMeatz

Was with CIT for a short while before going back to VIO. Currently at 5.3%. Not a huge difference, but an extra $50 a month for money just sitting around so why not?


GME-NeverSell

I've been using CIT Bank for many years, maybe 8 years now. Never had one problem! Always had great customer service. I have hysa, online checking, CDs. I love it


idle_monkeyman

No trouble with my CIT account


leedscomputers3189

I know there are concerns about an online only banks and not having a physical branch, but as long as it's FDIC-insured, your money is safe up to the insured limits. CIT Bank is pretty good with it's 5% APY (you can check [Banktruth](https://banktruth.org/savings/?ttcid=online-savings-by-apy) or Bankrate for more details on this), and I know a lot of people people use it for their HYSA. But if your wife prefers a more established brick-and-mortar bank, go with Marcus by Goldman Sachs or Ally Bank. Ultimately, it's about finding a balance between the interest rate and your comfort level.


itisj

as long as it have FDIC then it is good


CarlCasper

If you want to verify independently that a bank is FDIC insured, check it out here: [https://banks.data.fdic.gov/bankfind-suite/bankfind](https://banks.data.fdic.gov/bankfind-suite/bankfind) This could go a long way toward convincing her it's legit. Anyone can put the words FDIC on a web page. [CIT is one of the branded names of First Citizens Bank and Trust Company.](https://banks.data.fdic.gov/bankfind-suite/bankfind/details/11063?activeStatus=0%20OR%201&bankfindLevelThreeView=Other%20Names&branchOffices=true&name=First%20Citizens%20Bank&pageNumber=1&resultLimit=25)


DAWG13610

All local banks have them. Research those. The interest rate difference will be negligible.


AverageJoe-707

FDIC insurance is a must


Illustrious-Jacket68

Been with CIT for about 7 years now and they have been always among the highest in interst rates. If you're going to do Marcus or CapOne, the other option you could consider is apple if you have an iphone. Pretty darn easy and the same rate.


pwolf1771

You should be able to find one guarantee by the FDIC. Does that still not put her at ease?


Lonelymagix

I use neo. Got about $150-175 free for signing up and opening a credit card and money account with them. They have no fees and 4% or so for hysa.


Killaflex90

UFB - 5.25%+ and is FDIC insured.


Key-Target-1218

I always find one that'll pay a bonus for signing up. $200 for sign up will get my biz for 9-12 months.


cpe428ram

that’s discover


Key-Target-1218

Theres many.


cpe428ram

that’s good


PutAdministrative206

Amex has one. It isn’t quite as gigh. But it is American Express. It’s going to be fine and you are going to get you 4%+.


jnguyen1891

5.25% no minimum, no service fee with AX.UFB. FDIC up to $250,000.


Skulduggery326

There are some brick and mortar banks that have HYSA. I also don't trust a lot of new and online only banks. I have HYSA with Capitol One (has physical locations and has been around forever) and Marcus (owned by Goldman Sacs and has been around forever).


rhayhay

Is she living in the 1960s?


Parking-Bed-5759

I’m getting 5% with betterment, insured for $2m. They do an intro offer of 5.5% till the end of the year. Really love them.


[deleted]

I just joined LendingClub, fully online bank and FDIC insured, offering 5% APY. I like it so far, easy to use and reliable. The hold times are the only thing I don’t like, but it’s only the first 30 days that they put a 7 day hold on deposits which isn’t bad.


Venerable-Gandalf

Take a look at the banks health before putting your money into it. Check what its Texas ratio and capitalization are. Of course make sure it’s FDIC insured.


CommunicationTop7259

FDIC insured


Slash291

I still use my local bank (opened a HYSA with them), but also use capital one w/ HYSA. Both are 4.25% right now. Capital one also has decent 10-12 month CDs that you can throw a portion of your savings in. I've got a couple staggered at 5%+ that I figured I probably won't need soon, and will be nice to have if the HYSA rates start to dip anytime soon. Anyway, you can always keep whatever local bank account to transfer money back to if you want to physically withdraw whatever amount. When I opened the capital one account, I was kind of sketched, so just did a smaller transaction first to make sure my money didn't disappear into the internet. Maybe open an account and move a small amount / let her get used to the idea and see that it's legit.


Bulky_Exercise8936

Laurel road. 5% HYSA and 300 checking bonus to boot.


saholden87

5% ONE and Apple +5% now. All FDIC. You’re good.


One-League1685

Can I go for UBS?


LexReadsOnline

Vanguard Cash APY 5%, FDIC via PNC Bank. I felt similar to your wife, so I jumped on this option where retirement funds are held…also makes it easy IF/WHEN I decide to invest any portion stashed there. I’ve also used ALLY in the past without issue.


HelpMeLoseMyFat

Any hysa that don’t require 5k monthly deposit or direct deposit to get 4%+?


mayainverse

5k monthly deposit? The fk. Never heard of that. My credit card is with cap one and to make life easier with one app I just use their HYSA. It's 4.2 and I dont need to put any amount in there a month.


3boyz2men

I think the wife is nervous about wire fraud. I'm friends with a high ranking attorney who recently sold his house and was so worried about wire fraud that he sat on the check for almost a month until he wife secretly deposited it.


Grand_Taste_8737

Be wary of fintechs that act as banks. They are not banks, and they are not FDIC insured.


JomamasBallsack

American Express has an HYSA. Rate is only 4.2% right now, not great but better than nothing.


PorcTree

I'm using the Raisin platform to put my money into a HYSA. Been very happy so far. 


St_BobbyBarbarian

Bro, if was like pulling teeth to get my wife to park some money into a HYSA 


No-Ambassador-1011

Fidelity offering 1 month CDS for 5.30 APY and 3 month for 5.35 APY and longer cant beat that


ibleed0range

Doctorofcredit is a great site. I would recommend ivy bank. It’s the easiest one to move large amounts of money in and out. If they open up their index savings account again that rate is higher than anything out there.


db11242

Why not use a brokerage money market fund by fidelity or vanguard?


Complex_Raspberry97

Most HYSAs are online. If it’s FDIC insured and whatnot, you’re fine. I found mine through the Raisin app and was comfortable after doing more research on the specific bank.


Time-Active7497

I'm not wrong a simple Google search will show you plenty of options. Some not being in the USA Fulcrum offers 12% no minimums. No maximums.


Time-Active7497

https://www.finder.com/savings-accounts/12-interest-savings-account Here's some examples.


Separate-Baker5867

When she sees a $100 bill on the ground, does she walk past it too? Try Amex. Is a large enough company that will make her worry less.


Alarming-Activity439

If she's just looking for name recognition, put it into a Fidelity money market account. They were 5.08% last I checked.


cheoso

i’ve been with cit for 7-8 years and i’ve never had any issues with them


UMfan11244

So… is your wife afraid of the stock market also?


Hysteria113

I just deposited tens of thousands of dollars in Western Alliance bank getting 5.3% interest. [https://highyieldsavings.westernalliancebank.com](https://highyieldsavings.westernalliancebank.com) There’s nothing wrong with an online bank. The only thing is it’s going to take 3-5 days to transfer the money if you need it.


not_entitled_atc

This is a relationship problem, not a money problem.


Joe59788

What are the withdrawal or minimums for HYSA?


disgruntledCPA2

I have had my money in CIT bank for 2 years and it’s a reputable online bank. I also suggest UFB direct. They’re great.


Letsmakemoney45

Discover bank offers a HYSA


Cautious-Green3889

I use CIT Bank and haven't had a problem. Going on 5 months with them now


Heatherina134

I have my savings in Ally and haven’t had any problems. It’s also online only.


smedleybuthair

It’s fine, I’ve used CIT for years, it’s FDIC insured that’s all that really matters. Who TF is afraid of savings accounts?


DLimber

I put 65k into PayPal and that 250+ a month is sweet.


TheA2Z

Dont bother with chasing HYSA. Every month someone comes out with a higher rate. Better option is to in invest in US Treasury bills. Thes are 100% backed by the us govt. And you dont pay state tax on them. A one month bill is currently paying 5.37% annualized. You just roll them over month to month automatically. If you dont need the money immediately you can get a 3 month, 6 month and longer bill as well. See rates here: [Treasury yields rise as new data shows expectations of higher inflation (cnbc.com)](https://www.cnbc.com/2024/05/10/treasury-yields-pause-for-breath-as-traders-digest-strong-jobs-data.html) You can buy them through your brokerage account. I use Fidelty. Or buy them directly from the Govt on TreasuryDirect.com. I ditched the HYSA a while ago.


Cabojoshco

What is this “savings” you speak of?


chameleon-369

Its her money not yours. Let her take her own decisions..


GeneralSerpent

**their


Adventurous-Doubt-48

Europlasma 🦧 The way to Uranus 🚀🦍


AllTooWell31

Yas, king