529 for kids

Oh look the bot copy pasted the same crap again

Sofi doesn’t have the highest interest rates. I like Fidelity more

Pick a HYSA that is highly reputable, popular, and most importantly, FDIC insured. This ensures that your money is always safe whenever you deposit your money while generating a good amount of interest.

Examples: Discover Bank, AMEX HYSA, Marcus by Goldman Sachs, Capital One 360, or even Ally Bank

Pick the brand that suits you most. I personally use Marcus by Goldman Sachs and have no issues with them whatsoever.

High yield savings.

I use Amex. You don’t need to have an Amex card and there is no minimum. The rate is currently 3.7%. You want a local savings account, too. Then you link them and can transfer money within a couple of days.

Advice: go to the website of 3 local banks and look up their HYSA. My local bank that we use has a Money Market (functions like a HYSA) for 4.15% if you have “$10k of new money” (money that’s not currently in the bank there).

Online banks have better rates than traditional ones, usually around 3.5-4.5% APY with no fees, compared to traditional ones that are around 0.01% or 0.05%. Credit unions also have decent rates and fewer hidden fees. Just make sure your money is FDIC or NCUA insured. If you're curious, you can take a look at HYSA aggregator sites.

Also, watch out for teaser rates that are super high and then drop fast, and fees for low balances. You'll know that when the rates are around, let's say, 5% or more. If you want, short-term T-bills and CDs pay over 5% as an alternative to a HYSA. Also, FYI, rates change all the time, so don’t stress about chasing the highest APY. Just avoid banks that make withdrawals a hassle.

I use SoFi and have found it to be very user friendly 🤓👍🏼

If it is in a 401K you should open an IRA with Fidelity and transfer it there. After the money is transferred invest it all in VOO.

What type of account at T Rowe Price is that money in? 401k? Roth 401k? Something else?

Generally you can transfer those funds tax free to the same type of account that you can open on your own at a brokerage house (Schwab, Fidelity, Vanguard, etc).

If this is an employer's 401K, you should open an IRA--either traditional or Roth (or both)--and then do a rollover. If the 401K is traditional, rollover into a traditional IRA and vice versa for Roth. If you fail to do that, it will cause a taxable event and you'll owe income tax on the rollover of the traditional 401K into a Roth IRA.

In terms of where to open an IRA, I recommend either Fidelity, Schwab or Vanguard. You really can't go wrong with either.

Once you rollover the funds into your IRA, also remember to actually buy some equities so it's not just sitting in cash. Also remember to enable automatic interest/dividend reinvesting. If you don't know how, all three brokerages have excellent customer support. The same advice about making sure to buy something applies to any future contributions as unlike a 401K, IRAs do not automatically invest for you unless you set it up. In fact, this applies to most accounts like taxable brokerages and even some 401Ks, if you choose the wrong investment choice like say investing in money market funds, can leave you losing out on gains because it just sits as cash earning meager interest.

As for high yield savings, those are meant for cash savings--basically money you will use during the short term (say less than 5 years). If you want to maximize the return on your saving, you should invest that money in the stock market, but only do so with money you don't need before 5 years in case there is a momentary stock market dip, which based on the last two major recessions took on average 4+ years for prices to recover.

As for where to save for retirement, the most efficient hierarchy in to save in the following order:

1. Employer 401K up to the employer's match. Not contributing up to the match is leaving free money on the table and is a 100% guaranteed return.

2. Roth IRA. IRAs are accounts that you control and thus you have better investment options and lower fees.

3. Health Savings Account. This only applies if you're also enrolled in a compatible high deductible health plan. While HSAs are technically meant to pay for medical expenses, they can be used as a third tax advantaged retirement account due to the current law that does not require you to seek medical reimbursement right away. Thus, people are using HSAs like a super-IRA where you get triple tax savings. Like a traditional IRA, your contributions go in pre-tax, while growing tax free and when you withdraw it to reimburse yourself for past medical expenses, the withdrawals are also tax free. Thus people are paying out of pocket with the intent of reimbursing themselves decades later after the money has had time to grow and compound tax free. And if you run out of medical expenses to reimburse yourself with, by age 65 you can withdraw from the HSA penalty free and only pay ordinary income tax--thus it's effectively the same as a traditional IRA, but without the required minimum distribution when you reach a certain age.

4. Go back and max your employer's 401K.

5. Taxable brokerage. This account doesn't get any special tax treatment, but you can withdraw from it penalty free anytime, however you'll be taxed on capital gains, so be careful on what you invest in here and triggering taxable events.

For high yield savings, use that for short term savings on money you need within a 5 year or less period. So for example, if you are saving for an emergency fund, HYSA is perfect.

The replies to this recent post might be helpful for you - https://www.reddit.com/r/freelanceuk/comments/1kjdddi/feeling_a_bit_anxious_about_pensions_how_are/

Gracias, se ve extensa la tabla pero una observación faltaron las tasas a la vista de stori creo que andan por ahi del 8.5%

Excelente aporte, te da la comparativa que no he visto en otros lados.

Siento que a Hey banco Pro le tiran mucho hate que porque tienes que sacar una membresía, no se de donde sacan eso si literal haciendo 6 compras de 100 o más accedes al Hey Pro, y además de esto ni compras tienen que ser, puedes hacer 6 pagos a tarjeta de crédito que tengas de 100 pesos y te lo toma como compra y listo Hey Pro por pagar tu tarjeta que ya debias de otro banco y te da de las mejores tasas disponibles con respaldo IPAB de banco y con limite de 50 millones en inversion no como otras que dan mas tasa pero esta limitado a 20mil o 50mil pesos.

Por cierto, Hey banco Pro la tasa a 7 días es de 8% no de 10%

Justo estaba buscando una tabla asi, muchas gracias por tu trabajo.

Ualá + tiene la condición de gastar $3000 o pasar tu nómina.

Fidelity Cash Management Account - these accounts are totally slept on. Basically a checking account with a default position earning similar interest to HYSA. You can get a debit card and checks if you want or just treat it like a savings account.

I love capital one HYSA but they only pay 3.6%. I’m sure you can find higher but I have cc with them so chose them

I signed with up Openbank (Santander) and it is a HYSA at 4.4% - pretty simple app and easy so far. Haven’t had any issues

Non traditional but solid advice - Skip the middle man (banks), and buy the securities they invest in pseudo-directly through a brokerage account with ultra short term bond ETF’s like SGOV and/or VUSB. You’ll get a much higher interest rate (4.7% and 5.2% currently), it’s safer in many respects too. It comes with a super small amount of capital risk, but it’s more than worth the difference in interest they pay out.

My credit union does 4.3%, I would suggest getting a CU

I have a lot of investments at Vanguard so I just use their money market for my HYSA needs. 5.43% APY currently.

For me that’s currently a 6 month emergency fund and payoff balances for auto and student loans below 4%

I use Ally. Theirs is at 4.35% I think. Not as good as some others but I have been with them for a while and don’t feel like making the effort to switch over half a percentage point.

I use SoFi as my primary bank, they offer something like 4.5% in savings (and okay amounts in checking) and are otherwise delightful to deal with. They’re not only FDIC insured, but you can opt in to them automatically spreading your money across several institutions to up your insured amount to $1m (not that I’d recommend keeping $1m in HYSA in the vast majority of situations, but)

Fidelity MMF pays 5.01%. It isn't FDIC insured but it holds nothing but short term government debt. If federal government defaults on its debt FDIC insurance likely isn't worth the paper it is written on.

Never felt the need to move money around to a bunch of banks I have never used to get yield when Fidelity sweep account is usually better.

https://fundresearch.fidelity.com/mutual-funds/summary/31617H102

I’m enjoying Wealthfront. 5% with a 5.5% intro bonus for 3 months. Great website and app too.

I personally love Ally Bank. I’ve been with them for over a decade. Amazing customer service

I like Discover; I have a CC with them and trust them completely and their HYSA has Zelle which is so convenient; decent interest rate too

I've had Discover for awhile now and it's been great!

besides Ally, I would go for discover bank

Ally has been great to me for 6 years or longer now.

Go to this site:

MyAccountHolder.com

Make a free account there. They give you access to all of the best accounts in one place. All big banks and credit unions are there. You can check who pays the most today and transfer your money with a click of a button. Didn’t know that such a place existed. I thought to share it with you guys. Hope that helps.

Here are the best accounts now:

• CIT Bank Platinum Savings – 5,00%
• SoFi High Yield Account – 4,60%
• American Express® High Yield Savings Account – 4,30%
• Capital One 360 Performance Saving – 4,25%.
• Barclays Online Savings Account – 4,35%

I’d recommend not chasing the highest rate, but rather find a well respected company. The rates change pretty regularly, so the highest rate savings account may not be the same next month.

Ally

Marcus

Amex

There are probably others, but I think those are the ones I see mentioned most often.

No matter what you choose, make sure there aren’t any fees, or minimum balance requirements, etc. When you chase the highest rate, a lot of the lesser known banks end up having extra requirements to avoid fees.

Wealthfront is at 5% with no fees and a card for immediate use in case of emergencies

Our Fidelity HYSA is at 5.15%.
July 2023 - Dec 2023 we've accrued over $900 in interest.