Safe Investing Company Recommendations (Savings accounts, CD's)

[WillowMarie]

Decided it was a good time to start keeping a savings account again (have only checking right now which offers zero interest) and maybe open a CD to earn some type of interest on my money. Does anyone have any suggestions for companies that they are happy with that provide a higher APR for smaller balances and need no current direct deposit? I've seen a few online only or mobile ones, like Varo, and would like to see if anyone has feedback or experience as mobile and online only banking is new to me and would love to have an easy company and layout/app to work with..

Plus, if anyone has any recommendations of companies they have been happy working with for CD's. Again, smaller amounts of money (usually minimum I've seen is $500 to open) and shorter amounts of time, like 6 months (is this the shortest?).

Since taking my personal finance class, I've been really excited to get started and now seems to be the time. Still want to play it very safe, but any other investing recommendations or tips you find helpful.

 

[Willowy]

Ha, no. When I was younger I had a bunch of CDs at 4%-5% interest. Now I don't even bother because the highest interest is like .5% and that's not worth tying up the money for a long period of time. And I think my savings account has a .15% interest rate. I've been considering some of the online accounts but I'm suspicious of most of them. So I'll be following this thread to see if anyone else has better suggestions!

 

[WillowMarie]

W Willowy WoW! The good ole days... Two of my friends suggested Ally to me today, who both use it. Seems their savings accounts are 1% interest right now. The CD's they have you'd have to have the money in longer than a year to get slightly above 1% (like 1.1%), so seems opening a savings account is a much better deal right now. If it changes and CD's get better deals, I can always move money into them as needed.

Varo has higher rates, especially if you have direct deposit and other criteria, but is only mobile and I'd like to hear someone I know who has used it to feel comfortable using it.

I want one that can be used on a computer and not just phone. Think I may go with Ally, but will think it over in the next day and see if anyone else has any suggestions.

 

[susanm9006]

When you are looking at CD’s, three things are important. That it is from an FDIC insured bank or Credit union. 2) the interest rate and period and 3) the early redemption penalty. Early redemption penalties can be as high as a couple years worth of interest.

There may be some online banks that offer good rates but usually credit unions have the best. You usually have to have some kind of qualifier, like living in a certain area or working in a certain industry but if you qualify they are great for both savings and loans.

There are also some banks that pay competitive rates on regular savings and even checking accounts which are better for someone who may need to take money out on short notice. If this is your only savings I would research these.

 

[WillowMarie]

susanm9006 Thank you for all that information. Great tip on the credit union offering better rates on CDs. I'll have to check that out!


Another friend suggested Synchrony, which has 1.05% savings account rate.I think I may still try Ally because the website looks really easy to use, and you are able to "put money" into different savings categories, so you can see what money you have to spend and what money you cannot because it will go towards car insurance payments or similar.

 

[AbbysMom]

I'm another fan of credit unions. In most cases the customer service and rates are better. Both of the ones I deal with have online banking.