Author Topic: What's the best cash savings account (best ROI)?  (Read 8825 times)

Zach

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What's the best cash savings account (best ROI)?
« on: July 20, 2013, 08:49:27 PM »
Anyone have opinions on the best place to stash liquid cash? Besides online savings accounts through Ally or Capital One 360, is there any FDIC insured account that is higher yielding?

rawraw

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Re: What's the best cash savings account (best ROI)?
« Reply #1 on: July 20, 2013, 10:06:44 PM »
That five percent one through PayPal

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Zach

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Re: What's the best cash savings account (best ROI)?
« Reply #2 on: July 20, 2013, 10:57:16 PM »
Thanks! I also came across the Mango Card at 6%.

Rawraw, do you use the Paypal savings account personally?

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PennySaved

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Re: What's the best cash savings account (best ROI)?
« Reply #3 on: July 21, 2013, 01:46:55 AM »
I have about $5000 each in savings accounts attached to the PayPal (5%),  Mango Money (6%) and  Union Plus (5%) prepaid debit cards. 

Union Plus prepaid debit savings account pays about 5% for up to $5,000.
http://www.unionplus.org/money-credit/prepaid-debit-card

The usual setup, have to put money onto debit card, then transfer to savings.  Can only get the savings out through the debit card.  You get the promotional savings rate if you enroll in recurring direct deposit of $50 per month.  $2 per month maintenance fee for the debit card.

PennySaved

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Re: What's the best cash savings account (best ROI)?
« Reply #4 on: July 21, 2013, 01:48:16 AM »
I also use the American Express Savings Account (online only) that pays 0.85% interest.

Zach

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Re: What's the best cash savings account (best ROI)?
« Reply #5 on: July 21, 2013, 02:02:44 AM »
Thanks for the input PennySaved!

I went ahead and signed up for the Mango Money account and immediately thought it was BS that they charge you the $5 monthly maintenance fee immediately once you open the account - no chance to meet the fee waiver requirements on the first month apparently  :'(

I guess I'll have to deal with it if I want to take advantage of their rates...

PennySaved

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Re: What's the best cash savings account (best ROI)?
« Reply #6 on: July 21, 2013, 03:40:56 AM »
I have direct deposit of $500 per month to avoid the monthly $5 charge for Mango.  Then I use the Mango card for groceries, fast food, etc.  I also get $40 cashback when I am using it at the grocery (Giant Food), no extra charge for getting that cash.

rawraw

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Re: Re: What's the best cash savings account (best ROI)?
« Reply #7 on: July 21, 2013, 07:23:18 AM »
Thanks! I also came across the Mango Card at 6%.

Rawraw, do you use the Paypal savings account personally?

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I was until I started my credit card arbitrage. Then I moved the money back into an account in case I had to close the position quickly for whatever reason

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DutchNurse

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Re: What's the best cash savings account (best ROI)?
« Reply #8 on: September 22, 2013, 11:01:29 PM »
Are there fine print for these accounts? Like "'must use debit card X times per month?"

PennySaved

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Re: What's the best cash savings account (best ROI)?
« Reply #9 on: September 23, 2013, 08:19:20 PM »
Usually there is no minimum use required of debit card required, but you may be required to have a minimum amount of direct deposit to the get the higher rate for the savings account attached to the debit account.  You can only get money into the savings account by first putting it into the debit account.  Then you can transfer money from the debit account to the savings account.  And the only way you can get the money out of the savings account is to transfer the money back into the debit card and then use the debit card.  And there are fees associated with getting cash from ATM using the debit card and monthly debit account fees (Paypal Prepaid has no monthly fee as long as you have no balance in the debit account). 

Some users just plan to keep the savings in the savings account for a while, and then when they need it, close the account for a $10 fee (fee amount may vary by company) and the company then closes the account and sends you a check.  And this may not be that quick.  Or you can get your $5000 back by using the debit card to buy money orders which you can then deposit into a checking account.  Some users say they have been able to pull money electronically from the debit card only using various methods, besides making purchases, but I have not done that yet. 

You definitely need to read the agreement closely and all the terms ("fine print") and understand all the fees involved before you use these prepaid debit accounts with the savings account.  There is no problem transferring money into the debit account from other checking accounts, but as I understand it, you are not supposed to use the debit account to transfer money out of it to other accounts.