Hi, I’m a new college grad with around $30k saved up. I’m currently with a credit union I’ve been with since I was a teen with a savings account with an interest rate of 0.25%. Should I switch to someone like SoFi with a higher interest rate? I’m super new to personal finance so any advice would be sweet.
Advice Needed for Savings Account
byu/Brilliant-Wing8445 inpersonalfinance
Posted by Brilliant-Wing8445
5 Comments
Yes, something that gives currently 3.2% or above, and doesn’t have hoops for you to jump through.
If the local credit union offers you something you value, like physical consultations, quarters for laundry, lower loan rates; you don’t have to close your account there. But the bulk of the money can and should be earning more, yes.
consider a high quality municipal bond fund, or a high yield Money market fund…You credit union might be able to help you with both/either.
Sofi only pays a higher rate if you have monthly deposit over $5k or pay $10/mo for Plus.
You need to look at how you bank, and find the highest rate you can qualify for with the things that you do https://wallethub.com/best-high-yield-savings-accounts
Etrade savings is fine (~3.35%, no strings) and they have a free checking as well.
Fidelity CMA has hysa yields with checking-like features (buy SPRXX or set core fund to SPAXX), no ATM fees worldwide, free wires, no NSF fees. For me Fidelity CMA is the easiest way to high yield, no fees, lots of features
I use a money market fund. Something to consider. It’s paying me about 3.5%. If your emergency fully funded here’s the biggest thing. I don’t need the cash compounding. I have the dividends automatically invest in to some other funds for me too. If you still need a bigger pile of emergency fund, then let the dividends compound here. If your emergency fund is built up, then use out for other investing opportunity.
Check SOFIs rules, believe you need monthly direct deposits to qualify for higher interest rates.
Check bank rates on internet for possibly a different online bank, such as Ally, Cap 1 that dont require monthly direct deposits from salary and give high rates.