Best bank for emergency house repair account?

Submitted by wmd3 t3_z8u0w5 in personalfinance

I’m going to start setting aside funds every month to go towards future “emergency” repairs on my home. A few typical house things have broken down this year and the warranty company snaked their way out of paying, so I’m cancelling the policy and putting the monthly payment towards a repair fund instead. A savings account is the best option for this right? Since interest rates are so low these days, does it really matter which bank I choose?

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MikeWPhilly t1_iyd7y41 wrote

It absolutely matters. Savings accounts in most banks are nothing. High Yield accounts are actually decent. Take a look: https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts

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TyrconnellFL t1_iyd9y2o wrote

HYSA is not an official designation. Don’t go looking for it. Just find savings accounts that happen to offer better rates.

Nerdwallet lists them, as above. So does https://www.doctorofcredit.com/high-interest-savings-to-get/

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MikeWPhilly t1_iydewo1 wrote

Aware it’s not a financial product but calling it that gets people googling the top lists for “high yield savings options”. And every month a host f financial advisory sites post the highest rated options.

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limitless__ t1_iyddzv6 wrote

HYSA Ally, Marcus, Discover, Amex, Capital One.

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Concerned-23 t1_iyd8s8w wrote

HYSA. Mine is 3% and I know there are others that are higher

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peegravy t1_iyd95hu wrote

My Goldman Sachs Marcus account is at 3% interest right now. I’ve banked with them for over 5 years and am very happy. It’s a basic HYSA and they don’t bombard me with ads for other products.

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LandofBacon t1_iydb2n0 wrote

I think the user experience at SOFI is pretty good, and they have a high Yield savings with no fees.

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F-Panda12345 t1_iydfgp5 wrote

I personally really like Ally as a HYSA. Really easy to open multiple accounts, and also you can split buckets in the same account to earmark for different things.

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Superdank888 t1_iyereei wrote

I use Robinhood Gold as a HYSA and it’s currently at 3.75%

Do you mind sharing the home warranty details?

I’d always heard those and car warranty options are scams and they take your money and never pay out when you actually try to claim. What actually happened?

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saltyhasp t1_iyew1pv wrote

Personally I would just include this with whatever your cash management plan, emergency fund, and investment plan you have.

I generally do not favor separate accounts by purpose. Leads to lower returns and poor cash management and asset allocation. Not saying no but my preference.

My motto is place money by asset type not by purpose.

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