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Old 08-02-2020, 06:41 PM   #581
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Wow - just noticed that Synchrony Bank dropped their High Yield Savings rate from 1.05% to 0.75% on July 31st.

That's a huge move!
I'll bet Ally follows.
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Old 08-02-2020, 07:18 PM   #582
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Boy am I P.O.'d. I got in on the Citibank $400 for $15K deal last December, waited the 4 months then pulled the $15400 and closed my account.

I get a Robocall yesterday about my Citi account. Turns out they say the account was never closed and they have been charging me fees and now overdraft charges (because the fees gave rise to a negative balance) every month.

I'm thinking I should call the Better Business Bureau. For me this is just an annoyance, but imagine someone living paycheck to paycheck getting screwed out of $100 this way.

Needless to say I won't be doing business with Citi again, and hope I can drive as many potential customers away as possible.
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Old 08-02-2020, 08:04 PM   #583
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Discover Bank dropped from 1.01% to 0.95%.

Capital One still hanging in there at 1.0%
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Old 08-03-2020, 04:09 AM   #584
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FWIW, I had 2 CDs mature recently: opted for 2 GNMAs (not funds) paying over 2% for expected 3 - 4 years

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Old 08-03-2020, 04:33 AM   #585
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I recently opened an account at Marcus. While reading around here, I thought the name was a joke, didn't know what you all were talking about.

Now with a few weeks under my belt, I'm happy with it.

I decided to park some cash here instead of any MM funds at Vanguard. Looking for some FDIC assurance.
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Old 08-03-2020, 05:06 AM   #586
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I recently opened an account at Marcus. While reading around here, I thought the name was a joke, didn't know what you all were talking about.

Now with a few weeks under my belt, I'm happy with it.

I decided to park some cash here instead of any MM funds at Vanguard. Looking for some FDIC assurance.
FDIC protects you if the bank/trustee goes under or tries to steal your funds. It provides "government backing" of a product (CDs and savings accounts) which without it provides no such insurance/backing.

Money market funds at the major fund families/brokerages are protected by SIPC insurance should the broker/trustee go under or attempt to steal your funds. Money market funds, are predominantly comprised of government backed securities. So, in this case, the fact that the underlying product is backed by the government in itself provides a portion of what FDIC does.

There are reasons why one might choose a savings account or CDs over money market funds. However, FDIC insurance is not one which should carry much weight. Money market funds have as good (if not better) protections. SIPC limits are generally $500,000 per investor account, where FDIC tops out at $250,000. Additionally, the major brokerages carry excess insurance which provides coverage above SIPC limits, many times to $1 million or more.
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Old 08-03-2020, 05:14 AM   #587
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FDIC protects you if the bank/trustee goes under or tries to steal your funds. It provides "government backing" of a product (CDs and savings accounts) which without it provides no such insurance/backing.

Money market funds at the major fund families/brokerages are protected by SIPC insurance should the broker/trustee go under or attempt to steal your funds. Money market funds, are predominantly comprised of government backed securities. So, in this case, the fact that the underlying product is backed by the government in itself provides a portion of what FDIC does.

There are reasons why one might choose a savings account or CDs over money market funds. However, FDIC insurance is not one which should carry much weight. Money market funds have as good (if not better) protections. SIPC limits are generally $500,000 per investor account, where FDIC tops out at $250,000. Additionally, the major brokerages carry excess insurance which provides coverage above SIPC limits, many times to $1 million or more.
Inquiring on one aspect of your statement.
Not currently as to yield but in the recent past, hasn't many of the higher yielding MM accounts at the brokerages invested in other securities at least partially such as Commercial Paper, etc?
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Old 08-03-2020, 05:27 AM   #588
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Inquiring on one aspect of your statement.
Not currently as to yield but in the recent past, hasn't many of the higher yielding MM accounts at the brokerages invested in other securities at least partially such as Commercial Paper, etc?
Of course - money market funds do routinely include commercial paper and other very high quality things. However, the bulk is government-backed. I don't think anything I stated contradicts that.

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Money market funds, are predominantly comprised of government backed securities.
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Old 08-03-2020, 02:59 PM   #589
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Marcus currently offers hi yield savings bonus of 0.10% and special 8 mo no penalty CD @ 1.1 % for AARP members.

https://www.depositaccounts.com/bank...-sachs/offers/
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Old 08-03-2020, 03:22 PM   #590
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Marcus currently offers hi yield savings bonus of 0.10% and special 8 mo no penalty CD @ 1.1 % for AARP members.

https://www.depositaccounts.com/bank...-sachs/offers/
Nowadays that's a good rate for that product.
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Old 08-03-2020, 03:49 PM   #591
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Well with Marcus, the FDIC thing was only part of it. The 1.05% was the other part. Better than the MM's at Vanguard.

Heck of a time to be celebrating 1%.
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Old 08-03-2020, 06:46 PM   #592
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I already have AARP and Marcus Online Savings but couldn't find any info on this promo. I looked back at the Deposit Accounts announcement and there is a link to an AARP sign up page. I put in my AARP member number and presto chango my rate rose to 1.15. I expect it will drop in the future, but this is my main accumulation account for major expenses so I'll take whatever I can get. I don't need the no penalty CD at present time.
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Old 08-04-2020, 07:59 AM   #593
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And Marcus dropped to .8% today. The .10% bonus lasts for 2 yrs.
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Old 08-04-2020, 08:27 AM   #594
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And Marcus dropped to .8% today. The .10% bonus lasts for 2 yrs.
Yep. Just got the email. Oh well. I'm primarily transferring from PNC Bank which has a terrible MM rate of 0.02%

How long before Ally drops their savings rate?
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Old 08-04-2020, 09:02 AM   #595
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Sheesh - saw the rate drop by Marcus and was just bragging to the gal yesterday about my keeping our accounts open with them in anticipation of future offers and talking up the new AARP rate bump and their 1.05% rate. Didn't move money though. On the good side, figured out that I could have the interest on our 3% GTE CD moved to a GTE savings account automatically each month, thence on to our linked Ally account paying decent interest.
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Old 08-04-2020, 11:19 AM   #596
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Considering the rate drop at Marcus ( I earned 1.1 % for one day), I decided I DO have a use for the 1.1% no penalty 8 mo CD. Iím going to use it for some fixed expenses instead of using the online savings. They havenít changed the 8 mo CD rate yet.
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Old 08-04-2020, 05:36 PM   #597
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Viobank's High Yield Savings just dropped to 1.04% (from 1.11%), but seems to be staying near the front of the pack.
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Old 08-04-2020, 11:29 PM   #598
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Sheesh - saw the rate drop by Marcus and was just bragging to the gal yesterday about my keeping our accounts open with them in anticipation of future offers and talking up the new AARP rate bump and their 1.05% rate. Didn't move money though. On the good side, figured out that I could have the interest on our 3% GTE CD moved to a GTE savings account automatically each month, thence on to our linked Ally account paying decent interest.
Can you explain the GTE part? I have a GTE add on CD. Am I able to have the interest go into a GTE savings account and then transfer to Ally? Does it not need to stay in the CD account? Is it not compounding?
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Old 08-05-2020, 03:40 AM   #599
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where FDIC tops out at $250,000.
It is important to remember that it is $250,000 per account holder. So if the account is a joint account for husband and wife the FDIC coverage is $500,000.00. If you add your child as a third account holder then FDIC coverage is $750,000 and so on.
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Old 08-05-2020, 04:04 AM   #600
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Can you explain the GTE part? I have a GTE add on CD. Am I able to have the interest go into a GTE savings account and then transfer to Ally? Does it not need to stay in the CD account? Is it not compounding?
CDs usually offer the option to transfer interest to another account which accommodates those who wish income from their CDs. In this case, youíre right, there is no compounding.
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