High yield savings accounts with pots?

[morgan11]

Can anyone suggest a High yield account that lets you subdividido pots? I find it easier to ear mark money for specific goals than have a general pot.

 

[agelababypo]

@morgan11 Ally for sure. They have “buckets” that you can even set transfers too. I have mine for taxes, escrow, car saving, vacation saving. It’s great

 

[kyfisher1]

@agelababypo Is switching savings accounts pretty seamless? I’d like to switch to Ally and organize my funds into buckets, but feel anxious about transferring 45k all at once.

 

[agelababypo]

@kyfisher1 Very easy to do and ya seamless. You’ll have one day where the money leaves the account and usually with 36 hours it’ll be deposited. I recommend a test run of maybe 1k just to check to make sure everything is good prior to but ya I have three savings with three banks and it’s all very smooth once you enter your accounts. I have a monthly transfer I do from my local bank to ally

 

[vincentious]

@agelababypo +1 for Ally, you can also use CDs for buckets (especially useful now with No Penalty CDs 4.55% yield)

 

[agelababypo]

@vincentious What do you mean by that? How’s that work?

 

[vincentious]

@agelababypo CD (Certificate of Depoit) is usually higher yield than savings account, but has a fixed term and you pay termination fee if you need to withdraw prematurely.

But Ally also offers No Penalty CD, which has higher yield than savings account, but there is no penalty if you need to withdraw early.

I almost always use CDs for longer term (12-18 months) saving accounts that I don't want to touch, for example rainy day fund.

 

[agelababypo]

@vincentious Ah ok I get what you’re saying now. I thought you meant you could literally have a bucket in your savings that was a cd. But I get it now

 

[mandm]

@morgan11 Ally

 

[kelsimonds]

@morgan11 Wealthfront lets you do this sort of thing, but in a much clunkier fashion than Ally

 

[al20000]

@kelsimonds Thanks for this, didn’t realize Wealthfront does this, is perfect for me since that account is for money spent on a 0% intro credit card and extra student loan payments.

 

[bharati21]

@morgan11 Ally

 

[resjudicata]

@morgan11 SoFi, savings account interest rate is 4.6% and they have “vaults” for different categories. Look around for account opening bonuses; I got $450 between SoFi and MyPoints for a checking and a savings account.

 

[rhianne]

@morgan11 There's also Alliant credit union, which supports up to 20 or so accounts under a single login. Your choice on if they're checking or savings, transfers between them are usually instant.

Edit: Typo

 

[cherokeerainelect]

@morgan11 I do all my banking with discover. Have for years.

I have a savings for each of my kids, checking, home renovation fund, emergency fund, and a daycare fund.

They’re all separate accounts but you can automatically schedule transfers and all transfers are instant.

 

[troylee]

@morgan11 Less conventional -- M1 Finance then set up different brokerages with your 'pots' names. Then invest in a money market account to get a higher return with the same risk profile than a HYSA

 

[morgan11]

@troylee This seems like considerable faff.

How would this be advantageous over setting up an ally account with pots?

I havent used money market accounts so I dont really get the point of them.

 

[troylee]

@morgan11 5.3% APR vs Ally 4.35%

 

[decibyte]

@troylee Is there a penalty to withdraw/sell from them whenever? I’m assuming just capital gains or the interest made.

 

[goneguy]

@morgan11 Ally, betterment (called cash reserve), wealthfront