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TOPIC: High Yield Savings Account

Re: High Yield Savings Account 7 years 9 months ago #16

  • Joeyman
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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-savings-compare-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).
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Re: High Yield Savings Account 7 years 9 months ago #17

  • Finance Globe
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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-savings-compare-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.
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7 years 9 months ago #18

  • Joeyman
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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.americanexpress.com/savings-product.html

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