Where Do You Stash Your Emergency Savings? | brokeGIRLrich
I’m looking for a new bank for my emergency savings account.
I’ve had those funds stashed in a CapitalOne360 account since well before it was called CapitalOne360. It was awesome when I opened it, honestly, one of the best on the market back then, but now it’s offering me a measly .5%.
Part of this was my own fault. You had to keep $2,000 in there to keep the awesome interest rate and I tapped it to go to grad school circa 2010. I got it back up to $2,000 before long, but apparently if you drop below the magic number once, you’re screwed.
Either way, this is where I am now, and since I dipped too low to keep the awesome interest rate (which I believe was at or close to 2%), it’s time to find a new bank.
Ally is currently in the lead with a decent interest rate at .87%, daily compounding, no minimum deposit and no maintenance fees. I also have a checking account with Ally that I love.
However, I’m wondering if it’s time to join a credit union. Several other personal finance bloggers have touted the benefits of credit unions over established banking institutions:
- How to Open an Account at a Credit Union at TeensGotCents
- How Banks Profit from Customers – and Why Credit Unions are Different at Common Sense Millennial
- Why Should You Join a Credit Union? at Money is the Root
I quickly found a great credit union in NYC offering 1.11% called Self Reliance NY. I only wonder how Ukrainian you have to be? Does one grandfather cut it? With that savings rate, it might not hurt to ask. And will I have to ask in Ukrainian?
At the end of the day, I’m pretty sure I’m going to just keep Googling for a few days (but not too many days) and then pick the highest interest rate I find. If it’s with an online bank, setting up an account is usually a piece of cake.
Have any of you used credit unions before? Where do you stash your emergency fund?
*Part of Financially Savvy Saturdays on Femme Frugality*
Haha, that bank is right by my house and my best friends father is in charge. I can actually find out what the policy is for you. I am Ukrainian, so if anything, I can be your connection.
Stefanie @ The Broke and Beautiful Life recently posted…“Real Beauty” in Real Life: Recognizing Your Own Power
Hmmm… I’ll keep that in mind. There’s a Slavic one near my parents house that I definitely do qualify for, I just need to look more into their rates.
I immediately thought of Stefanie! Lol. Credit unions are amazing. I have all of my accounts at one with an online portal so I can transfer funds super easily and immediately.
femmefrugality recently posted…Financially Savvy Saturdays: Thirty-Eighth Edition
I was just wondering if you could use Stefanie’s Ukranian decent to help you get an account. I am always amazed at all of the credit unions that are available. There is one in Brooklyn that is only available to you if you have a small business within a few block radius of the credit union. So bizarre. They do offer great savings account rates. And I know great is a relative term.
Shannon @ Financially Blonde recently posted…Music Mondays – I Choose You
Hah. I think I’d have to marry her to use her to open a bank account. Honestly, my own heritage may be enough. Near my parents is a generic Slavic one that I think I’m going to look into. I know I qualify with them.
Since I’m assuming you keep a pretty low amount of liquid cash, I wouldn’t focus so much on the interest rates. Instead, open a bank account with a signup bonus. I made $300+ last year just for opening a few new bank accounts (which I was going to do anyway). There are some hurdles to jump through but they are usually easy. Linky link to awesomeness: http://www.depositaccounts.com/tag/bonuses.html
Will Lipovsky, First Quarter Finance recently posted…Renting a Room off Craigslist (I Pay $275) – How It’s Done, Son!
That’s not a bad idea. I’m aiming to get it up to about $10,000 actually, but that’s a long way off.
We keep our emergency savings in a high interest savings account which really isn’t all that high at 2% currently a promo at 2.5%. .I remember when I first moved to Canada the rate was 3.5% I believe…. it’s since dropped but we tak what we can get. Some people park their money in investments they can easily dissolve to cash out the money that may give them a better return. Others don’t have one and prefer to use a line of credit if an emergency arises which I don’t advocate but they know they will pay the balance and keep the money they would have tied up in other investments that will make more money over time. It all depends on where you live as well.
CanadianBudgetBinder (@CanadianBudgetB) recently posted…How we became mortgage free in five years
I think using my credit card as my emergency savings would really stress me out. I prefer having the money standing by in a more tangible manner.
We have our emergency fund in a savings account at our bank. It’s convenient, and for every debit transaction, a dollar goes into the savings from the checking. The interest rate is practically non-existent, though. Good luck in your search!
Lauren recently posted…Weekly Wrap-Up #14- Technical Difficulties
That’s pretty cool how it transfers a dollar into your savings. Do you notice a decent amount amasses eventually?
I’m thinking about switching some of mine over to a Betterment Emergency Savings Fund https://www.betterment.com/
I recently opened up a small investment account there and I’m amazed how much more I’ve made than a regular savings account there in a just a few months. Also – so easy!
Most of the credit unions around us are related to a specific job or field – theres one for firefighters, people in the navy, those who work for the phone company, etc.
I had no idea there were credit unions related to heritage!
Charlotte recently posted…The Story Of Buying My First Car – Part 2
I keep some of it in power savings at my bank, as long as I have more than 5K I earn 1%, plus I keep 2K in my chequing to avoid $10 of monthly service fees. Anything else is in TFSA (Tax Free Savings Account).
debt debs recently posted…Worth it Wednesday ~ Dear Debt Letter
I’ve heard great things about Credit Unions! I had the opportunity to join one when I was in the workforce right out of college because it was connected with the company I was working for. But I never signed up! In the future, it could definitely be something we look into for sure. I hope you find something worth getting into! Thanks so much for sharing this with us at Countdown in Style and for linking to us, too!
Brittnei recently posted…Countdown in Style- Week 22
I only bank at credit unions. I moved out of my last bank when Chase took over Washington Mutual and they played that little trick where they held onto a charge and waited until they all would overdraw my account. Basically, I had several small charges over a couple of weeks. Then at the end of the couple of weeks, I had a large charge. Then, they processed the large charge first, then the next charge overdrew, and I ended up with $300 in overdraft fees in one day! I was told they have the right to hold on to a charge as long as they want. Been with credit unions ever since. Sometimes finding the right withdrawal ATM is hard, because their locations aren’t as close, but once you do, it’s all gravy! I HIGHLY recommend.
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Oh my gosh, I had no idea that they could do that with your charges! Good for you for leaving them, that is so NOT ok!!
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