Comment on My credit union no longer allows me to payoff pending purchases made on my credit card
dmention7@midwest.social 1 day ago
Easy peasy. Instead of making payments to your credit card, transfer the amount to a high yield savings account instead. Then use that savings account to pay your CC once per month. (Savings accounts typically have a limit on debits, but you can usually make as many deposits as you want.)
Enjoy the cashback AND a few bucks in interest AND having your checking account accurately reflect your “real” money at all times.
NewNewAugustEast@lemmy.zip 15 hours ago
Where is this mythical high yield savings account?
DarkAri@lemmy.blahaj.zone 1 hour ago
Cash app has one that’s 4%. Probably not quite what inflation is but not terrible either.
expr@programming.dev 4 hours ago
It’s a common financial instrument. You can find many providers online.
You get a much better interest rate than a typical savings account (I think current rates are around 4% or so), but you are typically limited in the number of withdrawals you can make per month. Banks offer better interest rates because the cash is less volatile and sits in the account longer. They are good for cash you want to park somewhere for a while but that you still need quick, infrequent access to, like emergency funds. Credit card payments are also a fine use for it, though I’d say the benefit is pretty minimal unless you consistently maintain a balance greater than the credit card payment.
NewNewAugustEast@lemmy.zip 3 hours ago
They vary wildly. The typical savings account now as about 1% or less. There are some online versions when offer 3.5. There are a few with stipulations: $200,000 in the account or deposits of $5,000 a month. Those are approaching CD type rates with rules.
But they are not particularity common.
expr@programming.dev 9 minutes ago
High-Yield Savings Accounts are something distinct from normal savings accounts. I don’t believe there are any HYSAs being offered that have rates as low as 1%.
You can find many institutions online offering HYSAs. It is definitely pretty common. In personal finance circles it’s very often recommended to put your emergency fund in a HYSA.
And yes, as you noted, HYSAs have different rules than normal savings accounts. Just like how CDs do.
whambawhomp@lemmy.world 1 hour ago
bankrate.com/…/best-high-yield-interests-savings-…
This was the first result that I searched. You can get a HYS with a little to no minimal balance. A lot of them are online banks, but they’re still FDIC insured. There are plenty HYS accounts out there that are usable for everyday people given you have the ability to save.
dmention7@midwest.social 15 hours ago
One that earns you more than the default 0.15% or so that you earn on most savings accounts.
You have to do a bit of hunting, but for example, I have an account with Citizens Access that earns 3.50% last time I checked. It’s not much, but it’s better than earning nothing on the emergency fund that I want to keep liquid and accessible.
NewNewAugustEast@lemmy.zip 6 hours ago
That is a really good rate. Online only version of Citizens bank right? The regular citizens rates are low like everyone elses, I wonder why they are offering such a high rate? You would think online banking wouldnt be that much of a benefit to them anymore but I guess it is. Pretty rare these days!
dmention7@midwest.social 5 hours ago
Yeah, its their online-only bank.
I have no idea why some banks can offer those CD-like rates while others offer virtually zero. Capital One 360 Savings and Ally have similar rates as well.