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Gigabit77 01-15-2021 09:39 AM

HYSA Alert - Buyer Beware!
 
Just thought I'd pass along a recent experience chasing after highest yield on cash accounts for my monthly retirement paycheck. Last July based on a postal mail ad for HYSA and subsequent google search I opened a High Yield Savings Account called "Accelerate Savings" with citiBank. It has been a nightmare and I'm in the slow process of closing the account as we speak. Although my problems with the account may not apply to everyone, you should at least be aware of the limitations they impose on you getting your money back out when you need it. First, there is a $15,000/month limit on transfers to other institutions, and $10,000 per transaction and/or per day. The clock resets each time you make a transfer so it is hard to use up the entire $15,000 every month. I've found it impossible to set a monthly check for $10,000 due to previously staggered withdrawals unless I skip a month all together and start over. When I tried to close the account out today on the phone I was told they can't do it over the phone, I have to use their mobile app or website. AND I can only withdraw $50,000 maximum every 24 hours and each withdrawal carries a $30 fee! They make it not only difficult but expensive to take your own money out and use it. Bottom line, ask lots of questions based on your planned usage before you make a deposit in a HYSA from citiBank. This would be a real shocker if planned for an emergency account and a sizeable amount was needed. Other institutions may charge in a similar fashion but I can't say from experience. I'm moving the money as fast as I can to my Fidelity Brokerage Account and taking the small hit on interest rate. They have no limits on frequency or amounts. Lesson learned the hard way!

calmloki 01-15-2021 10:10 AM

Quote:

Originally Posted by Gigabit77 (Post 2544043)
Just thought I'd pass along a recent experience chasing after highest yield on cash accounts for my monthly retirement paycheck. Last July based on a postal mail ad for HYSA and subsequent google search I opened a High Yield Savings Account called "Accelerate Savings" with citiBank. It has been a nightmare and I'm in the slow process of closing the account as we speak. Although my problems with the account may not apply to everyone, you should at least be aware of the limitations they impose on you getting your money back out when you need it. First, there is a $15,000/month limit on transfers to other institutions, and $10,000 per transaction and/or per day. The clock resets each time you make a transfer so it is hard to use up the entire $15,000 every month. I've found it impossible to set a monthly check for $10,000 due to previously staggered withdrawals unless I skip a month all together and start over. When I tried to close the account out today on the phone I was told they can't do it over the phone, I have to use their mobile app or website. AND I can only withdraw $50,000 maximum every 24 hours and each withdrawal carries a $30 fee! They make it not only difficult but expensive to take your own money out and use it. Bottom line, ask lots of questions based on your planned usage before you make a deposit in a HYSA from citiBank. This would be a real shocker if planned for an emergency account and a sizeable amount was needed. Other institutions may charge in a similar fashion but I can't say from experience. I'm moving the money as fast as I can to my Fidelity Brokerage Account and taking the small hit on interest rate. They have no limits on frequency or amounts. Lesson learned the hard way!

Yeah, I feel your pain. Citi is well known as Sh*ti because of their practices - they don't make it easy to make money off of them.
A work around for you: have an account with Ally or Discover or the like; link the Ally account with Sh*ti; then pull any amount you want from Sh*ti rather than trying to push money from Citi. Might take a week to get a new account opened with Ally and the link set up, but smooth sailing thereafter.

Sunset 01-15-2021 10:56 AM

OP - that is terrible. I've been lucky enough to stay away from Citi due to some small similar treatment of CD's that DW had.

Whenever I open an account for "temp" purposes, I push money in and pull money out from my main account. I do this just so I don't give the "temp" account control of my cash in my main account. (This is probably silly, but that way I don't have to worry about dead accounts lying around with confirmed access to my main account).

Maybe that has saved me from withdrawal issues from some of my "temp" accounts.

Bruno 01-15-2021 01:18 PM

I got this email today from Marcus.

Get a $100 Savings Bonus when you deposit $10,000 in new funds to a Marcus Online Savings Account.

Another Reader 01-15-2021 02:29 PM

Quote:

Originally Posted by Bruno (Post 2544153)
I got this email today from Marcus.

Get a $100 Savings Bonus when you deposit $10,000 in new funds to a Marcus Online Savings Account.

Beat me to it. You have to leave the money in for 90 days. Deadline is February 12.

RE2Boys 01-15-2021 02:36 PM

Quote:

Originally Posted by Bruno (Post 2544153)
I got this email today from Marcus.

Get a $100 Savings Bonus when you deposit $10,000 in new funds to a Marcus Online Savings Account.

Wish I got this offer, would have been glad to comply. Just moved all funds out of Marcus just a week ago. Logged in but didn't see any notices that it would apply to me.

Sojourner 01-15-2021 02:48 PM

I've been playing this game for a while (i.e., chasing small sign-up/transfer bonuses from various banks and brokerages), but I think I've ultimately decided—at least for now—that the amounts are too low to bother with. Why go to the trouble of opening a new bank account somewhere, transferring a bunch of money in, waiting for weeks or months, then getting a mere $100 or $200 or $300 in return? I've found that I can quite easily make that much by selling a few put or call options in a fairly low-risk way every month. Obviously, that is not going to appeal to everyone, but it works for me. The $$$/effort ratio is far better, IME, even though the risks are a bit higher.

audreyh1 01-15-2021 02:57 PM

Quote:

Originally Posted by Gigabit77 (Post 2544043)
Just thought I'd pass along a recent experience chasing after highest yield on cash accounts for my monthly retirement paycheck. Last July based on a postal mail ad for HYSA and subsequent google search I opened a High Yield Savings Account called "Accelerate Savings" with citiBank. It has been a nightmare and I'm in the slow process of closing the account as we speak. Although my problems with the account may not apply to everyone, you should at least be aware of the limitations they impose on you getting your money back out when you need it. First, there is a $15,000/month limit on transfers to other institutions, and $10,000 per transaction and/or per day. The clock resets each time you make a transfer so it is hard to use up the entire $15,000 every month. I've found it impossible to set a monthly check for $10,000 due to previously staggered withdrawals unless I skip a month all together and start over. When I tried to close the account out today on the phone I was told they can't do it over the phone, I have to use their mobile app or website. AND I can only withdraw $50,000 maximum every 24 hours and each withdrawal carries a $30 fee! They make it not only difficult but expensive to take your own money out and use it. Bottom line, ask lots of questions based on your planned usage before you make a deposit in a HYSA from citiBank. This would be a real shocker if planned for an emergency account and a sizeable amount was needed. Other institutions may charge in a similar fashion but I can't say from experience. I'm moving the money as fast as I can to my Fidelity Brokerage Account and taking the small hit on interest rate. They have no limits on frequency or amounts. Lesson learned the hard way!

A lot of places have daily and monthly transaction limits. However, I have never been limited by those if I initiate the transfer from the receiving institution.

rk911 01-15-2021 03:10 PM

Quote:

Originally Posted by Sojourner (Post 2544193)
...the amounts are too low to bother with. Why go to the trouble of opening a new bank account somewhere, transferring a bunch of money in, waiting for weeks or months, then getting a mere $100 or $200 or $300 in return....

+1

RE2Boys 01-15-2021 03:32 PM

Quote:

Originally Posted by RE2Boys (Post 2544183)
Wish I got this offer, would have been glad to comply. Just moved all funds out of Marcus just a week ago. Logged in but didn't see any notices that it would apply to me.

Found that this offer is open to both new and existing customers of Marcus. See: https://www.marcus.com/us/en/savings/osa-savingsbonus-1

I had an account with zero balance as moved my funds about a week ago, now moved the $10K back.

I hate the offers that require so many debit card transactions or direct deposits. Too convoluted and easy to make a mistake, but easy to do a one time transfer.

target2019 01-15-2021 03:51 PM

Banks should simply send money to us, just like rich Uncle Sam!

njhowie 01-15-2021 04:23 PM

Quote:

Originally Posted by rk911 (Post 2544210)

Quote:

Originally Posted by Sojourner
...the amounts are too low to bother with. Why go to the trouble of opening a new bank account somewhere, transferring a bunch of money in, waiting for weeks or months, then getting a mere $100 or $200 or $300 in return....
+1

In removing the remainder of the original post, you left out exactly what is wrong with the argument.

We're currently in a 90 day $200 for $5000 offer. To make $200 in a high yield savings account yielding 0.5%, you'd need to have $40,000 sit in it for a year.

When interest rates are so low, the bonus offers are well worth the bother in my view.

jazz4cash 01-15-2021 04:32 PM

I might do the Marcus offer but I wonít open a new account just for a few hundred $ bonus. The language in the linked Marcus offer is unintelligible.

njhowie 01-15-2021 04:34 PM

Quote:

Originally Posted by RE2Boys (Post 2544226)
I had an account with zero balance as moved my funds about a week ago, now moved the $10K back.

That may be too close that they do not consider it new money. You may want to consult with them to verify.

Dtail 01-15-2021 04:41 PM

Quote:

Originally Posted by njhowie (Post 2544250)
In removing the remainder of the original post, you left out exactly what is wrong with the argument.

We're currently in a 90 day $200 for $5000 offer. To make $200 in a high yield savings account yielding 0.5%, you'd need to have $40,000 sit in it for a year.

When interest rates are so low, the bonus offers are well worth the bother in my view.

+1 especially with a savings account vs. a checking account which typically requires more hoops to jump through.

njhowie 01-15-2021 04:42 PM

Quote:

Originally Posted by jazz4cash (Post 2544255)
I might do the Marcus offer but I wonít open a new account just for a few hundred $ bonus. The language in the linked Marcus offer is unintelligible.

$100 for $10,000 is towards the low end of offers at this time. But, we've done a few Marcus offers in the past, and you just put the money in, don't touch it, and they pay exactly on time. No other requirements. They are very good.

Also, you can open the account, and once the bonus is paid, drop the balance down to zero and just leave the account open - there are no fees for zero balance. When they come up with another bonus offer in the future, the account will already be there and you can move the funds in. That's where we are today - got the email(s) this afternoon, accounts are already open, will move money in closer to the deadline.

jazz4cash 01-15-2021 07:10 PM

On the Marcus bonus, it looks like the account balance before the transfer is not available for withdrawal for 90 days. I think I did one other one like that and I drew down the account to minimize the amount locked up. I canít believe the banks are doing this but they must think it works. My Penfed 5% CDs matured finally so I could do this without jumping through too many hoops.

rk911 01-15-2021 07:38 PM

Quote:

Originally Posted by njhowie (Post 2544250)
In removing the remainder of the original post, you left out exactly what is wrong with the argument.

We're currently in a 90 day $200 for $5000 offer. To make $200 in a high yield savings account yielding 0.5%, you'd need to have $40,000 sit in it for a year.

When interest rates are so low, the bonus offers are well worth the bother in my view.

my point is that for $100 or $200 is just not worth the effort involved. that's not going to change our lives one bit. our monthly income/spending is significantly in the black and our NW is in the low 7-figures. chasing those kind of rewards or juggling bunches of credit cards for points, for us, is just not worth the effort.

calmloki 01-15-2021 07:59 PM

Marcus is really good for these bonus amounts - think we've done 3 in the last year and a half for different amounts. I'd prefer to have 3% (I'm sloppy and figure a 3 month requirement uses our money for 4 months) on more than $20K, but we had $5.52 sitting in each of our two accounts from the last time I drained them, so just enrolled and moved $20k. Real easy when you have remote accounts already set up.

njhowie 01-16-2021 02:14 AM

Quote:

Originally Posted by rk911 (Post 2544382)
my point is that for $100 or $200 is just not worth the effort involved. that's not going to change our lives one bit. our monthly income/spending is significantly in the black and our NW is in the low 7-figures. chasing those kind of rewards or juggling bunches of credit cards for points, for us, is just not worth the effort.

For us, it's $1000 to $2000 a year. That doesn't change our lives one bit either. However, when you put some context around it, like "It pays our auto insurance for the year" or "It pays our electric bills for the year", well, then the hour or two I spend on it a year is well worth the effort. I'm retired - time is the one thing I have an abundance of.

I like having my money work for me. I keep a money market statement from March 2010 tacked to the wall right in front of my computer showing "30 Day Yield: 0.01%" just to remind me what receiving $1.74 over a 3 month period for $72,000 looks like. Never again. $100, $200, $300 for clicking a few buttons and letting my money sit in one bank's computer versus some other? Who would believe they actually pay so much for doing so little? 10 or 20 years ago who could have imagined such a thing? I'll pick up the $100 bill every time I see it on the ground - it's not too much effort for me.


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