High Yield Savings Account

**Joeyman** · June 26th, 2011, 11:40 PM

I am thinking of opening a High Yield Savings Account. Do you think it is worth the hardpull on my credit report? I would be depositing $2,000 to start with and adding each paycheck with a direct deposit.

Since I'm already an American Express card member, it would be easy to just use them, currently their interest rate is 1.0% or $20 per year on $2,000. It seems like a good idea to separate my funds better (so they're not so accessible) while also gaining more money with the interest, currently my savings rate is 0.10%. This is also a safe way to invest it seems. American Express allows the customer to tie with another account to easily transfer funds.

My only concern is fees. I don't know much about the high yield savings system. I fear transfers & withdrawals may cost. Not sure, I still need to do some more research.

http://personalsavings.americanexpre...s-product.html

Do you have a High Yield Savings account? How do you invest your savings?

**Finance Globe** · June 27th, 2011, 10:29 AM

I have this account already with AMEX and I love it. I use my AMEX One card and rewards get deposited every month as savings.

Funds are a bit hard to get compared to a traditional savings/checking account, but it is meant for longer term savings (that's the point). I would also look at Discover Bank for a comparison, they offer 1.15% APY Vs. 1.00%. http://www.discoverbank.com/online-s...are-rates.html

If you use these types of accounts mostly for deposits, I don't think you will have any fees to worry about, unless you go down the road of insufficient deposit funds or excessive withdrawals. But it's all there in the agreement during the sign-up process.

**Joeyman** · June 28th, 2011, 02:11 AM

Originally Posted by Finance Globe

I have this account already with AMEX and I love it. I use my AMEX One card and rewards get deposited every month as savings.

Funds are a bit hard to get compared to a traditional savings/checking account, but it is meant for longer term savings (that's the point). I would also look at Discover Bank for a comparison, they offer 1.15% APY Vs. 1.00%. http://www.discoverbank.com/online-s...are-rates.html

If you use these types of accounts mostly for deposits, I don't think you will have any fees to worry about, unless you go down the road of insufficient deposit funds or excessive withdrawals. But it's all there in the agreement during the sign-up process.

Discover bank does offer a higher APY, which is nice, but I'd prefer to use American Express because my relationship is already built and growing. I think opening the account is a wise idea and I am seriously considering the idea. Too bad my credit union doesn't offer such plans (their money market accounts suck as well).

**Finance Globe** · June 30th, 2011, 09:53 PM

I did a little research on MMA's, and their is a huge difference in rates. It doesn't make sense. In the mean time, most checking and savings accounts are paying .15%!!! It would take almost 7 years to earn 1 measly percent. How pathetic... I couldn't imagine the people living on fixed income right now with inflation.

**Nuovocapitolo** · August 3rd, 2011, 06:16 AM

I am getting 1.50% on my savings

**Finance Globe** · September 24th, 2011, 08:26 PM

I just got off of the phone with AMEX in regards to their One Card. As of November 7th, rewards will be gone, and the savings account associated with it will be closed for all of their accounts. A check will be returned to their customers with the account balance. What a bummer...

However I decided to open a savings account with them that pays similar interest. Instead of getting a check back for my savings, it will be transferred to my new savings account with them.

Originally Posted by Nuovocapitolo

I am getting 1.50% on my savings

Would you mind sharing where??? It's bad to say, but 1.5% is a terrific savings rate in today's world.

**Joeyman** · September 25th, 2011, 11:56 PM

Originally Posted by Finance Globe

I just got off of the phone with AMEX in regards to their One Card. As of November 7th, rewards will be gone, and the savings account associated with it will be closed for all of their accounts. A check will be returned to their customers with the account balance. What a bummer...

However I decided to open a savings account with them that pays similar interest. Instead of getting a check back for my savings, it will be transferred to my new savings account with them.

Would you mind sharing where??? It's bad to say, but 1.5% is a terrific savings rate in today's world.

Bummer!! I never ended up opening the account but am still considering an option like this down the road.