I got a Bank of America account when I was 15 and haven't really thought to switch my bank since, but my new job has me reviewing all my finances to see where i can squeeze out some savings. Apparently some banks are doing upwards of 4% APR on savings now???? Discover is 4.25%, SoFi is 4.50% if you set up direct deposit to either a checking or saving.
Also, since the Fed got rid of Regulation D's savings transactions limit for covid, some banks (including Discover and SoFi) got rid of it too, so you can basically use your savings as a checking account and get mad interest.
what a world
If this is your strategy, smarter to invest in money market / treasury funds. Vanguard lets you do this quite easily, and it’s 5.25% or so, and depending on the fund, may be also mostly state tax-exempt.
It's really just gonna be for my emergency fund that every says you should have so idk if I'd want to lock it up like that
Well, it’s not really locked up. You can sell anytime, and vanguard usually processes and gets you the funds back to a bank account in under a week. So it’s not like a CD or something. But understood that a few days turnaround could be too slow depending on the level of emergency for an emergency fund.
Money market accounts aren't locked up. It's basically like a savings account. It's a good place for emergency funds.
Oh zamn I did not know that! I'll have to look into that
Why doesn’t everyone use this then?
Probably hassle, and the fact that it doesn't have a debit card, I'd guess.