I recent;y noticed my online savings account yield has fallen from 2% APY when I opened it to 1.7% APY. My checking account however is still at 2% APY. So I was curious if anyone has any recommendations for an online savings/money market account that can beat 2% APY, with low or no minimum balance requirement?
If you have $10,000 at 2%, you earn $200/year or $16.67 a month. $170/year, or $14.17 a month.
If it takes even only an hour to research, open, and transfer money from that account, if you make over $60K, it’s a wash. I doubt it will take only an hour.
Obviously, extrapolate to your real math, but it’s probably not as worth your time as just finding $30 to cut over the year.
Navy Blue Foal said:
I recent;y noticed my online savings account yield has fallen from 2% APY when I opened it to 1.7% APY. My checking account however is still at 2% APY [...]
Your checking account offered 2% APY but you moved your savings to an online bank which also offered 2% APY? Not that it really matters now.
Navy Blue Foal said:
The point is to beat 2% because if I cant I might as well just transfer it back to checking where I am getting 2% already.
As you currently lose money by keeping the savings there, you should either spend time looking for a better account or transfer back to checking. Or do nothing and eat the loss.
Unless you really love moving money around, or your checking account has weird limitations, it most likely won't be worth your time to chase better interest rates, as WordTenor points out. There are probably other areas where you could earn or save more money with the same effort. Especially when you could get 2% APY by a transfer back to checking, as you point out.
just to make you all feel a bit better: saving rates for accounts where you can actually access the money, are, and have been for a while, 0.00% over here....
they could go below 0.00%. The general impact of that would probably be less saving, which would still be a very bad idea of course, but that's how psychology works.
Upside are the very low mortgage rates, which impact our personal budget a lot more...