Posted by Chuck on August 26, 2019
High-Yield APY Accounts

Published on August 26th, 2019 | by Chuck

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Marcus by Goldman Lowers Savings Rate to 2.00%

[Update 8/26/19: Rate lowered further to 2.00%.]

A lot of readers sent in that Marcus by Goldman sent out an email that the rate on their savings account is being lowered from 2.25% to 2.15% beginning tomorrow. We just saw a similar move by Ally to lower their savings rate from 2.20% to 2.10%.

A lot of readers have the Marcus account from this signup bonus offer. There are other options, up to 2.57% APY interest rates – best rates can be viewed on this dedicated page.



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DH
DH

Disappointing. Will probably look to open the PNC 2.35%

Burton
Burton

PNC or Citi Accelerate savings work well enough if you are working on or just finished the checking package bonuses.

Anon
Anon

Purepoint slashed rates across the board this morning. Large cuts!
Marcus also cut the 11 month No Penalty by 10bp from 2.30% from 2.20%

DJ
DJ

PNC dropped to 2.15

Ray
Ray

Damn, and I never even got an email or notification from PNC saying that they dropped from 2.35% to 2.15%. Maybe it’s time for me to move my money over to Merrill Edge and qualify for a higher tier of Preferred Rewards…

Anyone know the highest yielding money market fund I can purchase on Merrill?

EDIT: Nevermind, found it here: https://olui2.fs.ml.com/Mutualfunds/MFBDCashManagement.aspx looks like PVOXX is yielding the highest at 2.19% right now

SeanK
SeanK

Looks like the link requires a log in but easy enough to look up PVOXX so thanks for the info!
Are you trying to get the higher tier of Preferred Rewards for the credit card cashback/ points bonus boost?

Ray
Ray

I am, but after all this research I’ve found out that I’m actually better off keeping my money in high yield savings for now vs a money market fund at Merrill Edge. PVOXX requires a $100k minimum investment. BPTXX on that list only requires $5k but the yield is currently 1.47% so there’s an opportunity cost of 0.68% APY (i.e. costs $68 yearly for every $10k) to put it in BPTXX vs PNC @ 2.15%. SHV is a money market ETF you can buy in Merrill Edge with 1.90% yield so the yield difference is 0.25% and the opportunity cost on $10k is $25

Let’s say you have $0 in ME for now and are putting in $20k just to qualify for gold (25% bonus for a 3.75% return on the BoA Cash Rewards 3x category). The opportunity cost is $50 for only a 0.75% additional return on spend which means that you have to spend $6,666 on a 3x category to break even on that opportunity cost of holding your money at a lower yield. For most people it makes more sense to put that spend towards sign up bonuses.

Of course interest rates and yields can change and if you have $100k in cash that you don’t really want to put in equities it might make sense to move it over to ME. Of if you’re just a little bit short of qualifying for a higher rewards tier, it might not be too bad to move some over and put it into SHV.

SeanK
SeanK

Ah I see, yeah that is a high minimum. Thanks for sharing your research! For PNC, it depends on the region but some regions have 2.2% for their growth account currently although that might change of course. But thought it was interesting that their growth account in certain states have higher APY than their high yield savings account.

Grant
Grant

Fed hasn’t even lowered rates yet this is unfortunate

DCJoe
DCJoe

Same response as in the Ally discussion- the Fed isn’t the sole driver of market interest rates. The entire market is moving down- long term rates have even inverted and are below shorter term rates.

All the banks will continue to drop rates until they are able to get higher returns on their loans.

arl16
arl16

Opened a Wealthfront account and moved all money out of Marcus within minutes of receiving the lower interest rate email.

perfectviking
perfectviking

I’m not making any rash decisions. Yes, I could go to Wealthfront but I feel as if everyone’s rates will be cut as they expect a rate cut sooner than later. Disappointing, yes, but moving my money out of Marcus to a different account might be futile.

Matt
Matt

They just raised the rate yesterday (by .06%) when everyone else is cutting them. Also, they’ve basically committed to cutting rates only by what the fed funds rate cuts are (and not more than that). Check out their blog posts on what they’ll do if a fed cut happens.

They are 100% the best choice for savings for the near future. Marcus will cut again if fed drops funds rate.

Gidget
Gidget

Why not use Heritage Bank for 3.33%? They’ve been working for me for the last two years,

k.m.
k.m.

I signed up for the wealthfront 2.57% account last night after reading the doc article and transferred most of my money from marcus to wealthfront. i didn’t receive this email from marcus but what a nice coincidence.

K.M.
K.M.

Just got the email, here’s the text in it:

Hi ________ (I deleted my name),

Starting tomorrow, the rate on our high-yield Online Savings Account will be 2.15% Annual Percentage Yield (APY). As always, we’re committed to offering a highly competitive rate (more than 4X the national average) and helping you grow your savings.

Questions? Give us a call toll-free at 1-855-730-SAVE (1-855-730-7283), Monday to Friday, 8 am – 10 pm ET, or Saturday to Sunday, 9 am – 7 pm ET.

Thanks for being our customer.

P.S. You may wish to explore our high-yield Certificates of Deposit and No-Penalty CDs. Both allow you to lock-in a fixed, guaranteed rate of return until maturity. Click here for more info.

Debit
Debit

Thanks fed. Forcing everyone into overpriced stock market. And when it crashes and everyone loses money to some fat cats, bring out the pitchforks.
Quiz: Which party do rich people love?

SamL
SamL

The Socialist one. Beats me why, but that’s the bizarre reality.

Matt
Matt

The super rich understand that the masses can be squeezed only so hard before the system that enriched them fails. Something like 40% of households can’t afford a 400 dollar emergency… doesn’t sound like a sustainable situation to me.

rob
rob

Guillotine insurance?

atexit8
atexit8

I have a CD with Marcus that just matured.
I had to call to have the money transfered to the linked bank account.
Cannot be done online.
Royal pain in the butt.
No more Marcus.

v.k.
v.k.

same situation. And the process was deliberately painful.
Over the phone, they asked me so much information to confirm my identity.
Including the password to online account (I was not comfortable with sharing this one), SS number, answers to 3 questions to verify identity.
So easy to open a CD, so hard to close it… Never again.

Sven Katesh
Sven Katesh

Asking for the password and SSN is absurd.

v.k.
v.k.

I know. I was genuinely surprised. Only had this situation with Marcus. And this is just to prevent rolling over a CD.

atexit8
atexit8

Also received email today from Ally Bank. Online rate lowered from 2.20% to 2.10%

GoldBonds
GoldBonds

Disappointing to see well before the Fed cuts rates- moving my money out this week.

hananh
hananh

I have a BBVA money market account at 2.37. Will they also drop their rate? Is it worth transferring funds over?

MrObvious
MrObvious

Probably more accurate info if you call the bank than ask on an internet chat comment section.

YK3
YK3

Bailed for BBVA, they offer 2.4% and a $100 bonus offer right now. Decent timing if there is such a thing for this- the Marcus bonus offer also paid out for me a couple of weeks ago.

Gidget
Gidget

I have three accounts with Heritage Bank and earn 3.33%. It’s been going well for the last 2 years. I’m confused why other people would want 2.3% instead of 3.33%? I just buy .50 Amazon reloads.. so the $5 I spend each month on debit card purchases goes directly to my Amazon spending funds.

Pauline the Bean
Pauline the Bean

yes and why not do a TAB account for 4%? Why do you stay with Heritage Bank?

Sven Katesh
Sven Katesh

Please link to the TAB account with 4% APY.

Gidget
Gidget

The problem is TAB requires purchases to be $5 each, so $75 / month. I mean, it’s do-able. I COULD buy $75 of Amazon reloads each month. But I’m generally satisfied with Heritage only needing to do .50 x10 = $5. So $5 per month required vs. $75 spending.

Didn’t TAB also have a hard pull? Or was that confirmed to be a no? I remember seeing the TAB post when it was first posted to DoC.

Hugh
Hugh

The Tab account is not worth it for me. You have to buy a minimum of $900 worth of Amazon reloads a year. First, I don’t spend that much at Amazon. Second, that essentially reduces your rate down to 2.2%.Third, the fine print language states they can not give interest if they find your gaming the system and not buying a wide range of dollar values. Essentially, $5 reloads might not be enough.

LG
LG

Got the e-mail. I guess they were only raising it to compete with other banks. As soon as they started dropping there was no reason to keep it hight. I’ll still keep my account, though. Good enough to keep my 3-6 months fund.

Janet
Janet

Very disappointed in the rate drop. They were always the first to raise their rates among the big banks. I fully expect Barclays to drop their rate to 2.10% soon. I have opened up a Wealthfront account and have transferred all my savings onto there.

anon
anon

New 1% Money Market Bonus at Marcus up to $50k
For a limited time, take advantage of this offer on our high-yield Online Savings Account. Deposit $1,000 or more in new funds into a new or existing account within 10 business days of enrollment in the offer, maintain your balance at enrollment plus the new funds for 90 days, and we’ll give you a 1% cash bonus up to $500. Enroll in this offer at the link below or by calling 1-855-730-SAVE (1-855-730-7283) by 11:59 pm ET on 7/29/19

https://www.marcus.com/us/en/savings/cashbonus?prd=o

HT to SD

Chief Loss Leader
Chief Loss Leader

Rate is 2.00% APY as of 8/27. I was just checking my account and saw the change when I refreshed the page.

Chuck

Matt
Matt

Bleh. I’ll keep my money there until November (1% bonus) and then move it back to Wealthfront.

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