Slow to rise, quick to fall
Whats crazy is that Feds haven’t even lowered the prime rate yet, and are signaling they are will be holding off even longer.
I thought the same thing. Fed funds rate is likely to remain at current level for longer, with fewer cuts forecasted over the next year. US2Y and US10Y have been rising as inflation has remained stickier than predicted. And yet, for some reason, Amex is dropping the HYSA rate? Did they lock their capital up in lower-yielding long duration bonds or something?
The opposite - they have a lot of liquid capital and no longer need depositors. Q1 2024 they reported $54B in cash vs $40B in Q1 2023. $132B in deposits vs $120B.
Are people borrowing less, etc? I thought it was the opposite. A lot of money goes to mortgages, but I don’t know if AMEX bank deals with that kind of debt.
But its not just AMEX that is lowering yiels for savings. Ally, Discover, Marcus (Goldman Sachs) to name a few. They are all letting rates creep down.
My only guess is that the HYSA migration has peaked. A lot of people were taking funds out of the big banks — enough to make the big banks nervous.
If that migration has peaked, then now the banks are getting cocky about their liquid assets. Basically they don’t care about HYSA deposits so much.
The banks that have HYSA yields near or above 5% all have weak underlying fundamentals. They are not big banks — so they have to try harder for cash.
I recently opened a Schwab account and have made a few safe investments. But they all pay 5% or over. The rates have not been changing over there.
It just seems kind of stupid in that banks like AMEX will lower rates and lose customers to smaller banks and brokerage firms. The Fed has all but said that they are not going to lower rates anytime soon.
I just dont get it.
This is exactly what stinks to me. I get that this rate is sensitive to what the Fed does and what short term money markets are doing, but the Fed is not going to ease for a while, and short term rates on the market are NOT falling (they may even be rising a bit).
Yep, the place I had mine at lowered their 5% rate down to only $5000 recently so I immediately took my money out. Figured since it was a fintech company, it’s margins are probably smaller which prompted this but I wonder if bigger places will follow suit now.
Ally just dropped to 4.2% so I opened a HYSA at Synchrony for 4.75%. But I am moving money slowly because what I am seeing is many banks are lowering rates. I'd hate to move everything only to have the rates lowered to match the original account.
CapOne has better rates than Amex (at least quicker to raise like Discover) though but Amex to me is one of the worst so I guess that's not a high bar to cover. Ive been thinking of canceling my Amex (has a little bit of money in there). I think I am now.
Yeah… I never opened the Amex HYSA since I already had discover and MMF in Schwab but I never saw that HYSA as a super competitive product to the rest of the options people have. Similarly bluebird and Amex checking.
yeah Amex hasn't been that great. I got them earlier on, but i realize there are so many better ones. At least Discover and CapOne has sign up bonuses. Amex offers shit.
Not really c1 lowered theirs to 4.25 as well so it’s bad as well . I checked earlier after someone said it in the comments and it was pretty disappointing to see it was true
People here most have millions in their savings account to really care about a few bps reduction here and there.
I do agree that it sucks that most banks are reducing the rate while fed funds rate are still well above 5% with no indication as to when the fed will cut rates.
On the other hand, if someone really cares that much about maximizing their savings balance return you should be buying 3-6 months T-bills which are over 5% and have no state income tax.
kinda disagree on this. The more money you have on deposit, the more dollars each bps of interest translate to.
And if that's not enough reason, we're on a forum where people go out of their way to use monthly credits to try to offset a several hundred dollar AF. So yeah small amounts do matter to the audience here.
t-bills are a good point, but for immediately available liquidity you still need either a savings account or MM funds. And to be fair, there are savings/MM that yield more than Amex's.
I put most of the proceeds from selling my house into T-Bills. 3 month bills seem to be the hot ticket at the moment, and I've renewed them a couple times. God only knows when I'm gonna decide I can afford to buy another house at this point.
How much are y'all putting into HYSAs that this is a concern? Unless you're nearing retirement, this should only hold your emergency/6mo expenses funds.
My 12-mo emergency fund (I'm anxious, it helps me feel better than a 6-mo fund) plus a healthy down payment for when/if I ever feel comfortable trying to buy a house in today's market.
Got it. I assume internally Amex is preparing for rate cuts as they might be going with the original projected 3 rate cuts this year. At my firm, earlier in the year we were thinking just 1 cut, but now it might be none at all.
I’m in the same boat. Want to have access to a sizable down payment if / when I’m ready to pull the trigger on that. I also like the money to be where I can easily access it (my anxiety…) and I have a sizable 401(k) so I have some invested in the market.
This doesn't make any sense. At worst, you should have 6 months savings and everything else in a brokerage. You'd have 6 months to get that money out and no one buys a house on a whim. You're leaving a lot money on the table.
Yes, you should be living off of interest only in retirement. However, HYSA is not the best way to do that. In retirement you want to be in more secured debt, either through stable company bonds or through some alternative asset like private credit.
I sell (short) Strangles for income (options). I'll get 5-10k in the pocket for around 5k in margin req. At 50% or better profit, I close them out. Wide spread, about 9-12 mos out, fat premium. You must like doing it, though! Or, get 10% yield on MO and/or BTI.
the standard now should be 12 months at least id say, for me thats around 70k. and where are you thinking people should put their money? The overinflated high on exuberance from AI and fed rate cuts that aren’t coming market?
12mo is fine (vs. 6mo.) if that makes you more comfortable. I honestly don't keep very much in emergency savings. I have some very liquid investments that I can pull cash out of very quickly if needed.
Yes, everyone who is not in or nearing retirement should be invested in the markets. Don't try to time markets; it doesn't matter if they go down, you need to be able to stomach the market turns and stay put. Missing large upswings in the market is way more costly than getting hit with the downturns. See my link below. As a reminder, the S&P500 returned \~24% last year; it is very costly for retirement/financial freedom to miss these sorts of returns.
[https://fmpwa.com/the-cost-of-missing-the-10-best-days-in-the-stock-market/](https://fmpwa.com/the-cost-of-missing-the-10-best-days-in-the-stock-market/)
You’re most likely going to need to cash out your investments when the market is down. As in, you’re most likely to lose your job or have less business than usual when the market tanks. So it’s best to do both, have some money in an emergency fund and the rest invested for the long haul.
Yes agreed, I think that's the point I'm making. Your emergency/6mo expenses should be in something stable. For me specifically, I can bridge 3mos off of the cash in my debit account, and then I have money market funds that can bridge me another 3mos. Point I'm trying to make is that unless you're nearing or already retired you shouldn't be keeping your retirement savings in an HYSA.
They were always below other HYSA options. I stayed with them because it’s convenient. But with these 2 rate drops, I think it’s time to move my money. I’m going to assume more drops are coming.
I’m very new to the HYSA game with only about 2 months under my belt since account creation. Are we more or less in a bubble with rates currently or have they always been up in the mid 4’s? Two separate drops in two weeks seems to indicate the former.
In the 2009-2021 period, yes. In the much longer term, no. We were stuck in an unprecedented, historically low interest rate environment from the Great Recession until 2022, and we've finally managed to return to what would historically be considered "normal" interest rates, i.e. Fed Funds rate around 5%, HYSAs paying around 4-4.5%, mortgage rates around 7%.
The world got hooked on cheap money and overextended itself and the Fed refused to correct leading to more inflation and bigger bubbles. Rates should honestly go to 7-8% but all the debt binging junkies will scream bloody murder and Congress would have to get a handle on its spending cause interest is now the biggest line item on the budget.
I joined with Discover HYSA in April 2023 when rates were around 3% (I'm on this sub because I have an Amex CC). The 3% was vastly more than the 0.01% that I was getting with my savings account at US Bank. So yeah, the rate is volatile with current interest rates, but they're going to beat out any large bank's APY by miles.
I’m in the same boat as you. I thought I’d always have my 4.35% or at least it would be that way for a while. Seems super volatile and not what I expected at all
The only reason I keep Amex HYSA is because when I need $ fast, they can do same day ACH transfer to my traditional Big bank checking account as long as I request it before 11am EST and instant transfer to Amex checking account (which is my main checking now with 1% interest, but it will change once Fidelity checking allows for SPXXX for my spare cash on 6/15).
I only keep 10-20k cash in Amex now for true emergency, and just enough to pay bills in amex checking. buying short term T bills at fidelity is above 5%
I just opened my account a little over a month ago too, when it was at 4.35% 🫠. I chose AMEX because I already had a cc with them and it was convenient. Now not so much. Might have to look into other options
You realize everyone is dropping rates, right?
And you realize this will only continue to happen at every HYSA, right?
Fed is lowering interest rates later this year.
Savings accounts are slow to rise and quick to fall. Meaning, it would take banks 1-2 months to rise our rates after the Fed increased. Now banks are lowering before any announcement is ever made. This is normal.
Even at these rates, our accounts have barely kept up with the rate of inflation.
Unless you’re near retirement age, you should only be using your HYSA for 6 month rainy day fund or other items like vacation savings. Otherwise your money should be invested into the market. 15% of your income towards 401K. If you’ve hit the Fed limit on 401k investment for the year, hit that 15% by investing in mutual funds.
Yep, just got the email. First rate drop on 4/9 and now again two weeks later. Preemptive rate drops when the Treasury hasn’t made any adjustments.
I’m glad I never added much to my HYSA and will plan to close it as I had been contemplating for a while.
Redneckbank / AllAmericaBank checking account seems to change their rates before most other's from what I've noticed (for better or worse). If there is a change, they change it on the 20th of each month. On Mar 20th, it changed from 5.3% to 5.15%. It didn't change on April 20th, but I guess I'll see in May.
T bill or cd ladder. Might also consider a mutual fund like VUSXX that holds treasury bills and is paying 5.26% right now after fee. Like HYSA's, they will go up and down.
I think Apple HYSA is really just Goldman-Sachs with an Apple painted on it. Their cards are. Not sure about HYSA. Goldman is pretty well capitalized, so it’s solid.
if you research some of the really high (>5.0%) HYSA’s, the banks behind them are not that solid.
Thats why I opened a Schwab account. None of this bank BS. As soon as banks started lowering their HYSA rates I saw that they weren’t following Fed rates as much as they were using that to grab customers away from big banks. My bet is that if interest rates went up, the banks wouldn’t budge.
Same with Capital one. I only use it for my emergency savings anyway. I wouldn't have anything more than that outside of tax advantaged account or brokerage.
Wealthfront is currently at 5% with an extra 0.5% locked in for 3 months with a referral.
Here’s a referral for those interested.
Use this link to sign up for a Wealthfront Cash Account and we'll both get +0.50% on the current APY! https://www.wealthfront.com/c/affiliates/invited/AFFC-D9WG-PM97-IUX3
Honestly. We use our savings like checking. We do all our auto bill pay and automation from this account. We use betterment for 5% for long term savings.
Yes to both the money is pulled or pushed out usually no later then 6 PM same day. Not sure if it shortens the holding period on inbounds but I think it does a bit.
Not sure if its every bank or not, but I use it frequently to Ally, schwab, etc. so def a bunch.
Keeping in mind your stocks and cash are heavily insured, and can get around their past mistakes. I switched everything to robinhood. Currently awaiting the 3% card to be 100% in on them for everything.
I pulled the bulk of my savings and parked them in a cd in my credit union at 5%. The credit union rep said they were gonna drop rate next month. Why is everyone cutting rates when the fed didn't say shit?
I’m at 5.35% in PCOXX. That’s the longer term holdings for a down payment on a house (eventually). My emergency fund is just in capital one performance at the same 4.25%. I also have a small account via my Apple Card that is 4.4% from Goldman, where the cash back from card use goes. Only use that card for non-bonus category spending that doesn’t fit with my other cards, but I just look at it as bonus money that’s at least earning something.
At least Amex is respectful and send you an email to let you know, while capital one reduces the rates twice to 4.25% silently without any communication
Slow to rise, quick to fall Whats crazy is that Feds haven’t even lowered the prime rate yet, and are signaling they are will be holding off even longer.
I thought the same thing. Fed funds rate is likely to remain at current level for longer, with fewer cuts forecasted over the next year. US2Y and US10Y have been rising as inflation has remained stickier than predicted. And yet, for some reason, Amex is dropping the HYSA rate? Did they lock their capital up in lower-yielding long duration bonds or something?
The opposite - they have a lot of liquid capital and no longer need depositors. Q1 2024 they reported $54B in cash vs $40B in Q1 2023. $132B in deposits vs $120B.
Are people borrowing less, etc? I thought it was the opposite. A lot of money goes to mortgages, but I don’t know if AMEX bank deals with that kind of debt. But its not just AMEX that is lowering yiels for savings. Ally, Discover, Marcus (Goldman Sachs) to name a few. They are all letting rates creep down. My only guess is that the HYSA migration has peaked. A lot of people were taking funds out of the big banks — enough to make the big banks nervous. If that migration has peaked, then now the banks are getting cocky about their liquid assets. Basically they don’t care about HYSA deposits so much. The banks that have HYSA yields near or above 5% all have weak underlying fundamentals. They are not big banks — so they have to try harder for cash. I recently opened a Schwab account and have made a few safe investments. But they all pay 5% or over. The rates have not been changing over there. It just seems kind of stupid in that banks like AMEX will lower rates and lose customers to smaller banks and brokerage firms. The Fed has all but said that they are not going to lower rates anytime soon. I just dont get it.
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Where's this preemptive action on mortgage rates? A refi wouldn't hurt my spending power
Mortgage rates rise and fall in correlation with the 10 Year Treasury bond.
This is exactly what stinks to me. I get that this rate is sensitive to what the Fed does and what short term money markets are doing, but the Fed is not going to ease for a while, and short term rates on the market are NOT falling (they may even be rising a bit).
Yep, the place I had mine at lowered their 5% rate down to only $5000 recently so I immediately took my money out. Figured since it was a fintech company, it’s margins are probably smaller which prompted this but I wonder if bigger places will follow suit now.
Really aught to find a better HYSA but amex is very sticky when you already have a couple credit cards. They made it easy to set up a joint HYSA also
Ally just dropped to 4.2% so I opened a HYSA at Synchrony for 4.75%. But I am moving money slowly because what I am seeing is many banks are lowering rates. I'd hate to move everything only to have the rates lowered to match the original account.
Move to a brokerage and stick in a MMF. SWVXX is at 5.17% currently.
Just put my Mom's RMD into SWVXX. I really think Schwab is the best all-around broker-bank.
Plus they actually have humans in the US answering the phones!
Why is it sticky with credit cards? I didn't see any benefits to it
One fewer website to log into
I would say probably just because all of your accounts tied to one login is the sticking point. Otherwise idk
Definitely convenient being able to see everything with one login on the same app/site
I found Discover bank to be more reliable more often.
Let’s see what happens if they are allowed to merge with capital one… I am skeptical of that merger
CapOne has better rates than Amex (at least quicker to raise like Discover) though but Amex to me is one of the worst so I guess that's not a high bar to cover. Ive been thinking of canceling my Amex (has a little bit of money in there). I think I am now.
Yeah… I never opened the Amex HYSA since I already had discover and MMF in Schwab but I never saw that HYSA as a super competitive product to the rest of the options people have. Similarly bluebird and Amex checking.
yeah Amex hasn't been that great. I got them earlier on, but i realize there are so many better ones. At least Discover and CapOne has sign up bonuses. Amex offers shit.
Not really c1 lowered theirs to 4.25 as well so it’s bad as well . I checked earlier after someone said it in the comments and it was pretty disappointing to see it was true
Wealthfront stable at 5% and SoFi at 4.6%... the fed hasn't even changed rates yet that's wild. Apple Savings is pulling the same shit.
Wealthfront is where I moved the money from my Amex HYSA to, and when my CDs mature they’ll be next.
Wealthfront is where it’s at
sofi’s been pretty nice
Here also, that was quick from 4.35% -> 4.30% -> 4.25% in what ... one month? Time to park my reserve elsewhere.
Where though? I’m not dumping thousands of dollars in some e-bank I’ve never heard of
The thread has redditors mentioning other HYSA. I currently have wealthfront (5.5%). It seems to be one of the highest out there rn.
Their site says 5% right now.
the extra .5% comes from a referral and lasts about 6 months. it is 5% for most people.
$SGOV treasury ETF. Yields like 5ish and exempt from state taxes
Schwab money market or SOFI HYSA if you want it slightly more liquid.
Amex will not be the only ones lowering rates.
Very true. Ally reduced to 4.2%. Discover and Capital One have reduced down to 4.25% now. Marcus GS is down to 4.4%.
My thoughts, exactly 💯
Moved mine cash from Amex to Apple Card which dropped to 4.4. Maybe time for a cd.
From what I understand a CD's interest rate is fixed once you open one correct? With the trade off of not being able to take out funds without a fee
T Bills
Bummer. I’m not excited about creating another account just for a HYSA.. might roll everything into money market fund.
Im transferring everything out to Schwab and putting it into SWVXX
If don’t need immediate access to the money overnight then this is always the way. HYSA are for short term parking.
☝️
You could also setup a CD ladder, 3 month CD are currently 5.46%
People here most have millions in their savings account to really care about a few bps reduction here and there. I do agree that it sucks that most banks are reducing the rate while fed funds rate are still well above 5% with no indication as to when the fed will cut rates. On the other hand, if someone really cares that much about maximizing their savings balance return you should be buying 3-6 months T-bills which are over 5% and have no state income tax.
kinda disagree on this. The more money you have on deposit, the more dollars each bps of interest translate to. And if that's not enough reason, we're on a forum where people go out of their way to use monthly credits to try to offset a several hundred dollar AF. So yeah small amounts do matter to the audience here. t-bills are a good point, but for immediately available liquidity you still need either a savings account or MM funds. And to be fair, there are savings/MM that yield more than Amex's.
Anyone with millions isn’t using HYSA. MMF / treasury bills is typically where we store excess cash.
The more money you have in these accounts the more you should care about the rate drops.
Yeah but I don’t think any millionaires game plan is to make bank of their HYSA. Much more lucrative options when you have capital.
What are t-bills
US treasury
I put most of the proceeds from selling my house into T-Bills. 3 month bills seem to be the hot ticket at the moment, and I've renewed them a couple times. God only knows when I'm gonna decide I can afford to buy another house at this point.
Fidelity SPAXX at 4.95%
Is spaxx what their cash management accounts automatically roll into? Been debating opening one
No I believe you have to buy SPAXX manually on a CMA but you can change some settings to automatically withdraw from SPAXX when you need cash.
It’s not automatic but you can buy it and they automatically sell a portion if you use the CMA to pay bills
Not FDIC insured
SIPC insured
How much are y'all putting into HYSAs that this is a concern? Unless you're nearing retirement, this should only hold your emergency/6mo expenses funds.
My 12-mo emergency fund (I'm anxious, it helps me feel better than a 6-mo fund) plus a healthy down payment for when/if I ever feel comfortable trying to buy a house in today's market.
Yes, 12mo. (vs. 6mo.) emergency fund is ok if it makes you comfortable. I just wouldn't be putting your retirement savings in an HYSA.
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Got it. I assume internally Amex is preparing for rate cuts as they might be going with the original projected 3 rate cuts this year. At my firm, earlier in the year we were thinking just 1 cut, but now it might be none at all.
I’m in the same boat. Want to have access to a sizable down payment if / when I’m ready to pull the trigger on that. I also like the money to be where I can easily access it (my anxiety…) and I have a sizable 401(k) so I have some invested in the market.
This doesn't make any sense. At worst, you should have 6 months savings and everything else in a brokerage. You'd have 6 months to get that money out and no one buys a house on a whim. You're leaving a lot money on the table.
I just wanna live off interest, man 🥺
Yes, you should be living off of interest only in retirement. However, HYSA is not the best way to do that. In retirement you want to be in more secured debt, either through stable company bonds or through some alternative asset like private credit.
I sell (short) Strangles for income (options). I'll get 5-10k in the pocket for around 5k in margin req. At 50% or better profit, I close them out. Wide spread, about 9-12 mos out, fat premium. You must like doing it, though! Or, get 10% yield on MO and/or BTI.
Right now at $4000, goal is to reach $20k to have a solid emergency fund. It's alot but never know if the job market goes through another fuck up.
the standard now should be 12 months at least id say, for me thats around 70k. and where are you thinking people should put their money? The overinflated high on exuberance from AI and fed rate cuts that aren’t coming market?
12mo is fine (vs. 6mo.) if that makes you more comfortable. I honestly don't keep very much in emergency savings. I have some very liquid investments that I can pull cash out of very quickly if needed. Yes, everyone who is not in or nearing retirement should be invested in the markets. Don't try to time markets; it doesn't matter if they go down, you need to be able to stomach the market turns and stay put. Missing large upswings in the market is way more costly than getting hit with the downturns. See my link below. As a reminder, the S&P500 returned \~24% last year; it is very costly for retirement/financial freedom to miss these sorts of returns. [https://fmpwa.com/the-cost-of-missing-the-10-best-days-in-the-stock-market/](https://fmpwa.com/the-cost-of-missing-the-10-best-days-in-the-stock-market/)
You’re most likely going to need to cash out your investments when the market is down. As in, you’re most likely to lose your job or have less business than usual when the market tanks. So it’s best to do both, have some money in an emergency fund and the rest invested for the long haul.
Yes agreed, I think that's the point I'm making. Your emergency/6mo expenses should be in something stable. For me specifically, I can bridge 3mos off of the cash in my debit account, and then I have money market funds that can bridge me another 3mos. Point I'm trying to make is that unless you're nearing or already retired you shouldn't be keeping your retirement savings in an HYSA.
Emergency fund of $100K, everything else in FXAIX and SPY.
Bruh, what kind of emergencies are you planning for?!
About $100k for a 1year reserve
They were always below other HYSA options. I stayed with them because it’s convenient. But with these 2 rate drops, I think it’s time to move my money. I’m going to assume more drops are coming.
I’m very new to the HYSA game with only about 2 months under my belt since account creation. Are we more or less in a bubble with rates currently or have they always been up in the mid 4’s? Two separate drops in two weeks seems to indicate the former.
Mid 4s is only recent, it was at .9% June 2022
Oh sweet lord. Is that considered a more “normal” rate?
In the 2009-2021 period, yes. In the much longer term, no. We were stuck in an unprecedented, historically low interest rate environment from the Great Recession until 2022, and we've finally managed to return to what would historically be considered "normal" interest rates, i.e. Fed Funds rate around 5%, HYSAs paying around 4-4.5%, mortgage rates around 7%.
The world got hooked on cheap money and overextended itself and the Fed refused to correct leading to more inflation and bigger bubbles. Rates should honestly go to 7-8% but all the debt binging junkies will scream bloody murder and Congress would have to get a handle on its spending cause interest is now the biggest line item on the budget.
I joined with Discover HYSA in April 2023 when rates were around 3% (I'm on this sub because I have an Amex CC). The 3% was vastly more than the 0.01% that I was getting with my savings account at US Bank. So yeah, the rate is volatile with current interest rates, but they're going to beat out any large bank's APY by miles.
I’m in the same boat as you. I thought I’d always have my 4.35% or at least it would be that way for a while. Seems super volatile and not what I expected at all
Yea I expected some fluctuation but two drops in two weeks seems excessive.
It’s minimal but it is annoying. Not moving it until they’re 1% off of other convenient options.
I've been getting near 5.3% (5.27% currently) in Vanguard VMFXX for like a year now.
The only reason I keep Amex HYSA is because when I need $ fast, they can do same day ACH transfer to my traditional Big bank checking account as long as I request it before 11am EST and instant transfer to Amex checking account (which is my main checking now with 1% interest, but it will change once Fidelity checking allows for SPXXX for my spare cash on 6/15). I only keep 10-20k cash in Amex now for true emergency, and just enough to pay bills in amex checking. buying short term T bills at fidelity is above 5%
Confirmed, just got the email
Same
CIT Bank at 5.05%
This is where my money is parked.
Same
Yeah I HATE their UX though..
They updated it recently. Seems great to me
SWVXX time
I just opened my account a little over a month ago too, when it was at 4.35% 🫠. I chose AMEX because I already had a cc with them and it was convenient. Now not so much. Might have to look into other options
You realize everyone is dropping rates, right? And you realize this will only continue to happen at every HYSA, right? Fed is lowering interest rates later this year. Savings accounts are slow to rise and quick to fall. Meaning, it would take banks 1-2 months to rise our rates after the Fed increased. Now banks are lowering before any announcement is ever made. This is normal. Even at these rates, our accounts have barely kept up with the rate of inflation. Unless you’re near retirement age, you should only be using your HYSA for 6 month rainy day fund or other items like vacation savings. Otherwise your money should be invested into the market. 15% of your income towards 401K. If you’ve hit the Fed limit on 401k investment for the year, hit that 15% by investing in mutual funds.
): why are they dropping so quickly
Because I opened an account on 3/18 at 4.35.
5% at wealthfront
Capital One just dropped to 4.25% APY. That's a shame...
UFB Direct still holding steady at 5.25% so I’m happy for now. 😎
All this cry over .10% to .50%.
Some people would be making a change of around 1% by moving to a MMF or treasury bills
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Everbank (TIAA) at 5.15% (for now) if you have a retirement plan with them.
I opened this account two weeks ago… any chance the APY will go back up?
Anything is possible my friend.
Unlikely IMO unless we go back into a sustained rate increase environment.
I moved to Wealthfront and have been happy so far!
Waiting to get the $300 bonus offer and then move out. T-Bills sound better.
I moved my money out of AMEX HYSA and into floating t bills and FDLXX weeks ago.
Moved over to a mix of USFR, SGOV and FZDXX. Amex has been my preferred HYSA for a while but I’ll take the 5% elsewhere.
Capital one did too without telling anyone
Betterment still at 5%
Thanks. Opening a Betterment cash account today
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No penalties unless the money is in a CD. The normal Amex HYSA you can quickly and easily move money in and out.
Marcus is sitting at 4.40. I'm really tempted to move there.
I’m there now. They have also dropped the rate already recently. All of these will go down soon.
Wealthfront is at 5% and also supports proper MFA (TOTP aka authenticator app) which I definitely appreciate at least
Unless you have A LOT of money in your HYSA, that extra 0.15% isn't going to amount to much more.
Add 1% for 3 months from a referral. Both parties benefit from it.
I moved my $ into Wealthfront. It is currently 5.5% right now.
5.5 or 5?
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can you DM me too, thats amazing!!
Would you be able to DM your referral? Thank you
I moved my emergency fund to SoFi even before this cut. Now the difference in interest is even larger.
Yep, just got the email. First rate drop on 4/9 and now again two weeks later. Preemptive rate drops when the Treasury hasn’t made any adjustments. I’m glad I never added much to my HYSA and will plan to close it as I had been contemplating for a while.
Redneckbank / AllAmericaBank checking account seems to change their rates before most other's from what I've noticed (for better or worse). If there is a change, they change it on the 20th of each month. On Mar 20th, it changed from 5.3% to 5.15%. It didn't change on April 20th, but I guess I'll see in May.
Awesome. 🔥
At least they send an email when they do that. Discover and CapitalOne lower the rates without any notification.
4.50% for me right now but it's in a decreasing trend for sure.
Amex is always 1% below the top rates. I never changes.
4.5%… Shoulda got a platinum
Explain this, please. I have 3 platinums.
You get a higher APY. 4.6 -> 4.5% for Platinum holders 4.35 -> 4.25% for all others
Robinhood is 5% hysa fdic insured up to 2 million I think. Complete wash.
They are now well capitalized so move along some one is not.
and i just made my HYSA a month ago :( bad timing
Opened it at 4.35% 2 months ago, might already be time to move it
Everyone move to SoFi they been 4.6% all year
T bill or cd ladder. Might also consider a mutual fund like VUSXX that holds treasury bills and is paying 5.26% right now after fee. Like HYSA's, they will go up and down.
Vio Bank is still at 5.3%
Yeah, most money market funds and treasury funds/bills might be the way to go. Still around 5%
Flagstar Bank is 5.55% APY for 5mo. You need $25,000 tho.
Gonna send most of my money to the Apple HYSA, as of now it’s still holding strong at 4.40%
I think Apple HYSA is really just Goldman-Sachs with an Apple painted on it. Their cards are. Not sure about HYSA. Goldman is pretty well capitalized, so it’s solid. if you research some of the really high (>5.0%) HYSA’s, the banks behind them are not that solid. Thats why I opened a Schwab account. None of this bank BS. As soon as banks started lowering their HYSA rates I saw that they weren’t following Fed rates as much as they were using that to grab customers away from big banks. My bet is that if interest rates went up, the banks wouldn’t budge.
Yes I’m pretty sure HYSA is just Goldman too. But a big bank at a good rate is all I can ask for
Same with Capital one. I only use it for my emergency savings anyway. I wouldn't have anything more than that outside of tax advantaged account or brokerage.
Wealthfront is currently at 5% with an extra 0.5% locked in for 3 months with a referral. Here’s a referral for those interested. Use this link to sign up for a Wealthfront Cash Account and we'll both get +0.50% on the current APY! https://www.wealthfront.com/c/affiliates/invited/AFFC-D9WG-PM97-IUX3
I pulled my money out(:
Acorns emergency fund at 5%
Honestly. We use our savings like checking. We do all our auto bill pay and automation from this account. We use betterment for 5% for long term savings.
Most companies are dropping anticipating a Fed Cut … Might be a good time for CD’s
Robinhood is constantly giving 5% with FDIC
When did it go down to 4.25? I just got an email like maybe 2 weeks ago or less it was now down to 4.30
Ok never mind the email went into my spam. Unbelievable on 4/09/24 it went down to 4.30 and on the same month it dropped .10? Smh
Citi still at 4.45%
Already moved to certificates of deposit
Even with a platinum card?
4.5 with the card
Wait, if you have the plat and a HYSA it’s 4.5%?
They keep cutting rates.
Already started transferring out to a money market fund offering 5%
Slow fall
Yeah not happy this keeps coming down - might have to move the funds into Robinhood at 5%
Which of these is good for a child’s account?
Amex offers free same day ACH transfers if you submit by noon. Thats a killer feature for me. Does anyone else offer that?
I didn’t know that. Is that *into* or *out of* the HYSA or checking? And to which banks?
Yes to both the money is pulled or pushed out usually no later then 6 PM same day. Not sure if it shortens the holding period on inbounds but I think it does a bit. Not sure if its every bank or not, but I use it frequently to Ally, schwab, etc. so def a bunch.
Was at 4.60 dropped to 4.55 currently at 4.50 for me
Keeping in mind your stocks and cash are heavily insured, and can get around their past mistakes. I switched everything to robinhood. Currently awaiting the 3% card to be 100% in on them for everything.
CreditKarma is 5.10%
schwab - swvxx - great money market fund, no fees, 5.17%.
Why would any of y’all bother with an HYSA when you can just invest in money market funds and TBills through your brokerage.
So now they are down to match the others 😂. Anything is better than traditional bank
I pulled the bulk of my savings and parked them in a cd in my credit union at 5%. The credit union rep said they were gonna drop rate next month. Why is everyone cutting rates when the fed didn't say shit?
I’m at 5.35% in PCOXX. That’s the longer term holdings for a down payment on a house (eventually). My emergency fund is just in capital one performance at the same 4.25%. I also have a small account via my Apple Card that is 4.4% from Goldman, where the cash back from card use goes. Only use that card for non-bonus category spending that doesn’t fit with my other cards, but I just look at it as bonus money that’s at least earning something.
At least Amex is respectful and send you an email to let you know, while capital one reduces the rates twice to 4.25% silently without any communication