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?

Comments

MikeWPhilly t1_iyd7y41 wrote on November 30, 2022 at 3:16 PM

#808,992

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

Concerned-23 t1_iyd8s8w wrote on November 30, 2022 at 3:22 PM

#809,270

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

[deleted] t1_iyd8ur5 wrote on November 30, 2022 at 3:22 PM

#809,293

[deleted]

peegravy t1_iyd95hu wrote on November 30, 2022 at 3:24 PM

#809,372

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.

TyrconnellFL t1_iyd9y2o wrote on November 30, 2022 at 3:30 PM

#809,617

Replying to MikeWPhilly (#808,992)

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/

LandofBacon t1_iydb2n0 wrote on November 30, 2022 at 3:38 PM

#809,956

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

limitless__ t1_iyddzv6 wrote on November 30, 2022 at 3:57 PM

#810,907

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

MikeWPhilly t1_iydewo1 wrote on November 30, 2022 at 4:03 PM

#811,202

Replying to TyrconnellFL (#809,617)

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.

F-Panda12345 t1_iydfgp5 wrote on November 30, 2022 at 4:07 PM

#811,377

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.

Superdank888 t1_iyereei wrote on November 30, 2022 at 9:14 PM

#827,322

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?

saltyhasp t1_iyew1pv wrote on November 30, 2022 at 9:45 PM

#829,152

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.