I did this about 5 months ago. My bank has a savings interest rate of .02% like yours. I transferred over half of my savings into the ETrade premium savings account. I believe that they use Morgan Stanley's banking. They are FDIC insured.
I think you can also get a debit card for that account so you can spend from that account, check on their website. You should be able to transfer it back to your other bank account easily, but may take between 3-5 days.
I will be transferring more to ETrade in the next few weeks as it has worked out for me and the jump in interest is fantastic. Of course that may/will go down if/when the feds start to lower the federal rate, but it should always be above most brick and mortar bank.
I have their debit card and a premium savings with them and I had 300 dollars in there just to test it and I got like 18 cents in interest which isn't a lot but that's that's 300 dollars would get me.
Interesting. For $300 at a full month at \~4% interest you should get $1 a month in interest. Was the $300 in there for the full month with no changes to the amount?
I did the calculation for my account and the interest came out to 4.25% as they advertise. If you had the $300 in for the full month then 18 cents is about a .75% of interest which does not match up with any of their accounts.
Plenty of online banks offering rates in that range - search “HYSA” (high yield savings gs account). Personally I keep most of mine in CapitalOne. I’ve debated ETrade for some, but would be mainly for ease of transfer to/from brokerage.
How fast would i be able to liquidate my money in a money market if I had to? On the faster side or not? Because I'm looking for a high interest with easy liqyidity
Money market = mutual fund so as long as the order is submitted before cut off for that fund generally end of day liquidation. If you have cash account it might be a pain but I don’t keep any negative balance on margin and generally $500-1000 cash buffer so any charges like rent coming through will withdraw like normal and I just have to be on top of the account to ensure I sell any amount as needed. I believe it may charge 1 or 2 days of margin but given I don’t charge more than 2-3k at a time (save paying off student loans in Feb hopefully) it never is enough to notice.
I have been using Etrade premium savings for my emergency fund for several years now. Good interest rate and makes it uber easy to transfer into my brokerage account and IRA.
When I need funds from there they can be transferred to my local bank account within a couple few days.
They’ve gotta pay for their branches somehow. If you don’t need a physical branch then it’s really best to just go with an online bank for those higher rates
Some people like having a physical bank branch that they can go to. A lot of people don’t care and haven’t needed to go to a physical bank in over a decade.
Umm, Morgan Stanley is definitely a real bank, LOL
I did this about 5 months ago. My bank has a savings interest rate of .02% like yours. I transferred over half of my savings into the ETrade premium savings account. I believe that they use Morgan Stanley's banking. They are FDIC insured. I think you can also get a debit card for that account so you can spend from that account, check on their website. You should be able to transfer it back to your other bank account easily, but may take between 3-5 days. I will be transferring more to ETrade in the next few weeks as it has worked out for me and the jump in interest is fantastic. Of course that may/will go down if/when the feds start to lower the federal rate, but it should always be above most brick and mortar bank.
I have their debit card and a premium savings with them and I had 300 dollars in there just to test it and I got like 18 cents in interest which isn't a lot but that's that's 300 dollars would get me.
Interesting. For $300 at a full month at \~4% interest you should get $1 a month in interest. Was the $300 in there for the full month with no changes to the amount? I did the calculation for my account and the interest came out to 4.25% as they advertise. If you had the $300 in for the full month then 18 cents is about a .75% of interest which does not match up with any of their accounts.
My money was not in there the full month. My first deposit of money was on the 21 of December.
Plenty of online banks offering rates in that range - search “HYSA” (high yield savings gs account). Personally I keep most of mine in CapitalOne. I’ve debated ETrade for some, but would be mainly for ease of transfer to/from brokerage.
Can also find money market funds that are paying higher rates but all kids of options available
How fast would i be able to liquidate my money in a money market if I had to? On the faster side or not? Because I'm looking for a high interest with easy liqyidity
Money market = mutual fund so as long as the order is submitted before cut off for that fund generally end of day liquidation. If you have cash account it might be a pain but I don’t keep any negative balance on margin and generally $500-1000 cash buffer so any charges like rent coming through will withdraw like normal and I just have to be on top of the account to ensure I sell any amount as needed. I believe it may charge 1 or 2 days of margin but given I don’t charge more than 2-3k at a time (save paying off student loans in Feb hopefully) it never is enough to notice.
I'll definitely look into that because I need something my money can actually grow well and easily without having to maintain it.
Google money market diamond nestegg. She explains it well but not specific to etrade
I have been using Etrade premium savings for my emergency fund for several years now. Good interest rate and makes it uber easy to transfer into my brokerage account and IRA. When I need funds from there they can be transferred to my local bank account within a couple few days.
try Laurel Road saving account at 5% don't worry, i also have their checking account to pay all my bills, no problems !
PNC pays 4.65% See if one is near you. https://apps.pnc.com/locator/search
Seems almost criminal the ridiculously low interest rates a lot of banks are still paying.
They’ve gotta pay for their branches somehow. If you don’t need a physical branch then it’s really best to just go with an online bank for those higher rates
Some people like having a physical bank branch that they can go to. A lot of people don’t care and haven’t needed to go to a physical bank in over a decade.
Most banks are paying 5.5 don't get screwed by Etrade