New answers tagged savings-account
6
votes
How are the banks behind high yield savings accounts able to pay such high rates?
For the most part interest rates are relative to the fed rate, which is currently at 4.58%. This is the rate at which banks lend each other money and I have not seen any bank offering a savings rate ...
- 334
5
votes
How are the banks behind high yield savings accounts able to pay such high rates?
The majority of high yield savings accounts are tied to a specific lender with a specific type of investment.
For example, American Express's HYSA will be used to fund American Express credit card ...
- 3,044
16
votes
How are the banks behind high yield savings accounts able to pay such high rates?
Since we are currently coming out of a zero-interest-rate regime you may be wondering how the bank can make money offering 4% on a savings account while getting 2% on the loans it made last year.
The ...
- 2,531
9
votes
How are the banks behind high yield savings accounts able to pay such high rates?
A variety of factors
Some view the interest as a marketing cost. If it costs $x to attract a customer, a bank can either spend that on a flashy marketing campaign with TV ads and direct mailers or ...
- 24.1k
19
votes
How are the banks behind high yield savings accounts able to pay such high rates?
How are the banks behind high yield savings accounts able to pay such
high rates? Where does their yield come from?
The money deposited in the checking accounts, savings accounts, high yield accounts,...
- 125k
0
votes
Need help in calculating interest on daily savings account
Thank to commenters for the hints!
I was looking at TD.
Here:
https://www.td.com/content/dam/tdct/document/pdf/personal-banking/513782-en-1.pdf
they say in 1.1:
Our interest rates are annual rates of ...
- 111
25
votes
Are demand and time deposit accounts really loans _to_ the bank?
Yes.
When you deposit a sum of money into a bank account, that account is an asset for you. At the same time, it is a liability for the bank.
Let's say that you are depositing $1000 to your bank ...
10
votes
Are demand and time deposit accounts really loans _to_ the bank?
Conceptually, yes, we are lending our money to the bank, and it is leveraging those loans to make other loans at higher interest rates.
It differs from most loans in that we can increase or decrease ...
- 36.9k
1
vote
pending recession: keep money in 401k or savings account?
Actually, if you are in the phase where you are drawing down the 401k (and/or other investments), it's worth considering keeping six months to a year's worth living expenses in cash or cash equialent. ...
- 36.9k
2
votes
Why can't I find an online savings account that supports revocable trust?
I think the answer is that the profit margins on those online accounts are very slim, so they limit customers to the easiest to service.
The suggestion to open an online brokerage account is good. ...
- 139
1
vote
Why can't I find an online savings account that supports revocable trust?
But why won't these only online banks accept a trust?
They will. I know for a fact because my trust has such an account. Call their customer service and ask for instructions on how to open it. ...
- 148k
11
votes
pending recession: keep money in 401k or savings account?
You are asking whether you should withdraw money from your 401k because you are concerned about economic downturn which might cause your investments to decline in value.
No. You should not.
The reason ...
- 3,006
-1
votes
Bank accounts closed unexpectedly, funds missing
If Wells Fargo suspect that you have been using the accounts for illegal activity, then they will block or close the accounts. They will not tell you why they have closed them, and they will not give ...
- 9,476
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