Online Credit Card Companies

RatLabGuy said:
#2 if you want a more detail explanation of the situation, one of my friends posted this on FB this morning, which I felt was pretty comprehensive.
Secretary Yellen has signed off on measures to enable the FDIC to fully protect everyone who had money in Silicon Valley Bank, Santa Clara, California, and Signature Bank, New York. They will have access to all of their money starting Monday, March 13. None of the losses associated with this resolution, the statement said, “will be borne by the taxpayer.”
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:kaioken::kaioken::kaioken::kaioken::kaioken::kaioken:
 
jeepinmatt said:
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:kaioken::kaioken::kaioken::kaioken::kaioken::kaioken:
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yeah....
So apparently how that works is that the FDIC is a non-government agency that is just "backed" by us taxpayers in event of a severe emergency. The member banks pay monthly insurance fees that go into their own emergency fund for paying off balances after a failure. E.g. that $250k coverage is basically an insurance policy covered by the banks. I *think* what is happening is that they are using THOSE FDIC funds to cover al the accounts, rather that dipping into the national treasury. If that interpretation is correct then we (taxpayers) aren't in fact paying.... although in a roundabout "we" still are - meaning anybody who pays fees to a bank, who then uses those fees to pay their FDIC insurance, if ultimately paying it.
 
RatLabGuy said:
yeah....
So apparently how that works is that the FDIC is a non-government agency that is just "backed" by us taxpayers in event of a severe emergency. The member banks pay monthly insurance fees that go into their own emergency fund for paying off balances after a failure. E.g. that $250k coverage is basically an insurance policy covered by the banks. I *think* what is happening is that they are using THOSE FDIC funds to cover al the accounts, rather that dipping into the national treasury. If that interpretation is correct then we (taxpayers) aren't in fact paying.... although in a roundabout "we" still are - meaning anybody who pays fees to a bank, who then uses those fees to pay their FDIC insurance, if ultimately paying it.
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Correct, but at the end of the day...
"we" still are - meaning anybody who pays fees to a bank, who then uses those fees to pay their FDIC insurance, if ultimately paying it.
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RatLabGuy said:
yeah....
So apparently how that works is that the FDIC is a non-government agency that is just "backed" by us taxpayers in event of a severe emergency. The member banks pay monthly insurance fees that go into their own emergency fund for paying off balances after a failure. E.g. that $250k coverage is basically an insurance policy covered by the banks. I *think* what is happening is that they are using THOSE FDIC funds to cover al the accounts, rather that dipping into the national treasury. If that interpretation is correct then we (taxpayers) aren't in fact paying.... although in a roundabout "we" still are - meaning anybody who pays fees to a bank, who then uses those fees to pay their FDIC insurance, if ultimately paying it.
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You seem to be unfamiliar with the concept of insurance. Here's a helpful link:

en.wikipedia.org

Insurance - Wikipedia

en.wikipedia.org en.wikipedia.org
 
A sure fire investment opportunity.
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JSJJ388 said:
So can some of yall brainiacs explain this to me a little better? We are with a fairly small online only credit union (Civic Federal). Not real thrilled about no branches and no way to deposit cash, but really like the bank. From what I understand, NCUA insures accounts to 250k so I have no worries.
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I use a local bank + credit union. Keep some in the local bank for if i need something quick. Cash I rarely have but if I have any I can deposit in the local bank easily and transfer it to the credit union. My paycheck goes into the local bank so I don't get any fees or anything then I transfer money over to the credit union.
 
DSM Turbos said:
I use a local bank + credit union. Keep some in the local bank for if i need something quick. Cash I rarely have but if I have any I can deposit in the local bank easily and transfer it to the credit union. My paycheck goes into the local bank so I don't get any fees or anything then I transfer money over to the credit union.
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We are doing similar with using SECU to put cash into when we need to. Just a slight hassle, but no biggie.
 
I just spend it all. Then I have cool toys and don't have to worry about "markets" and "bank collapses". :D



















Pretty sure that's a direct quote from my wife or her husband.
 
RatLabGuy said:
A lot of high-yeild savings accounts are now 5.25%. Crazy.

Competitive High-Yield Online Savings | Evergreen Bank Savings

Grow your savings faster with Evergreen Bank Group's High Yield Online Savings account. Enjoy competitive rates and easy online access. Open an account now.
www.evergreenbankgroup.com www.evergreenbankgroup.com
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Crazy or normal?
It’s an interesting debate. I found an old “jacket” where I opened my first savings account in 1985. It paid 9.25% apparently . Of course the average mortgage rate was in the 13-15 range and cars were 20
 
Bebop said:
I changed mine a couple of times in the past year but seems like I need to do it again.
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I haven't changed mine, because I don't want to deal with it over 10's or even a couple hundred dollars a year, but even with the 3.1% I have now, going to a 5.25% account starts to look worthwhile.
 
jeepinmatt said:
I haven't changed mine, because I don't want to deal with it over 10's or even a couple hundred dollars a year, but even with the 3.1% I have now, going to a 5.25% account starts to look worthwhile.
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yeah, if you have say $25k in savings then that will net you >500 smackers for a year. Getting to be worth it. I'm about to bail on UFB.
(also bc I absolutely loathe UFBs customer service)
 
RatLabGuy said:
yeah, if you have say $25k in savings then that will net you >500 smackers for a year. Getting to be worth it. I'm about to bail on UFB.
(also bc I absolutely loathe UFBs customer service)
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jeepinmatt said:
I haven't changed mine, because I don't want to deal with it over 10's or even a couple hundred dollars a year, but even with the 3.1% I have now, going to a 5.25% account starts to look worthwhile.
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I opened a HYSA and a HY MM account with ally a couple months back.
Couldn't have been easier and their web interface is great. They give free debit card and free checks when you open the MM.

Currently Im getting 4.5% and 4.7%. They've raised the rates 2x since I opened them...and the raises are painless and require no input - just an email: We've raised your rate.

They arent the absolute highest but super convenient and big enough to scratch my stability itch.
 
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I currently have a HYSA at American Express and their customer service is amazing.
But 4.15%

Which sounded awesome a while back, not so much now...
 
I'm at 5.15% 7 day yield with fidelity now. I use Truist with a little bit of money for when I need a local bank, and Alliant CU for a little more easy to access cash, but most of my cash now is with fidelity.
 
DSM Turbos said:
I'm at 5.15% 7 day yield with fidelity now. I use Truist with a little bit of money for when I need a local bank, and Alliant CU for a little more easy to access cash, but most of my cash now is with fidelity.
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What is the account with Fidelity called?
 
The fidelity is a mutual fund - not a guaranteed return, right?

The HYSA are traditiona savings account FDIC insured "zero risk" with stated guaranteed fixed returns
 
Ron said:
The fidelity is a mutual fund - not a guaranteed return, right?

The HYSA are traditiona savings account FDIC insured "zero risk" with stated guaranteed fixed returns
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Correct. It can fluctuate with rates. But can’t any traditional savings also change the rates at any time?
 
DSM Turbos said:
Correct. It can fluctuate with rates. But can’t any traditional savings also change the rates at any time?
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Correct - but mutual funds can go down and lose part of your investment
 
You guys have Savings Accounts? The Rich keep getting richer! Naw, if I had money for that, I'm like Ron, it'd be in MM or short term T bills. I have a savings & checking acc. tied to my Mortgage, but I have very little to drop in it. I think it pays like 1.5%. sometimes If the savings gets up & my regular checking is low, I'll pay a Mortgage payment or CC payment, out of it. Every time I walk in Fifth-Third, they say "Do you know were 'r paying 5.25% savings"? I just tell them my retirement money is invested.
 
Just a reminder, if you're going to ditch one bank or account for another one, and completely close it, do it right at the beginning of the monthly cycle immediately after they pay your monthly interest rate. If you close it halfway through, many banks have a policy that you forfeit the interest gained during that partial period.
If you don't close the account, but instead just tranfer everything out of it to the new bank, then you'll still get all of it, it just creates an awkward situation where the old account has a small amount (the partial interest). You can of course transfer that too, but then the next month it will have another teenie amount, etc. But you can probably be ok w/ foreiting that bc it will be pennies.

This does make me wonder how much $$ banks save on forfeited interest annually.
 
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