Traditional Savings vs HYSA Savings

Submitted by Tech_geek23 t3_10q2nl8 in personalfinance

I currently have my checking with Chase and a HYSA with Amex. I'm in the process of switching away from Amex so I'll need to move my HYSA money somewhere. I'm trying to decide between just simple savings at Chase for ease of adding money to it or Ally HYSA for the added percentage they would pay out.

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Any thoughts here?

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[deleted] t1_j6nft4b wrote

[deleted]

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Tech_geek23 OP t1_j6ng4yd wrote

I guess my question for me is how important is instant transfers over better interest rates then?

What's best way to determine if it's worth it

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[deleted] t1_j6ngzq3 wrote

[deleted]

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Tech_geek23 OP t1_j6nhf72 wrote

That makes sense too. My brain is on the ADHD side so being able to visually see the savings and slide money to it immediately is what's appealing to me knowing how my brain works

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GaylrdFocker t1_j6od10y wrote

Instant transfers are worthless. Pay with a credit card and pay off with savings, you have up to a month to transfer the money depending on purchase and due date.

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Tech_geek23 OP t1_j6odda4 wrote

Heh I do (smartly) play the credit card game so that works too

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sleepyguy22 t1_j6ngoxr wrote

Calculate how much monthly/annual interest you would make in a high yield account and then compare that price to the convenience of instant transfers.

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bflaminio t1_j6ngtkm wrote

Do the math on how much you really will make at Ally vs Chase (based on how long you expect to keep money there and how much money you will be keeping on deposit). That will give you a fairly solid number with which you can decide if it is worth the convenience of having everything at Chase vs the extra money you would get at Ally.

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Tech_geek23 OP t1_j6nh7qe wrote

I know ally won't be some crazy high amount. Given current rates it would result in a 1099-int but not a big enough number to be wowed if that makes sense.

Sounds like may as well just keep my money in the same place

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bflaminio t1_j6ni4xc wrote

There are advantages beyond monetary for doing so. I use Schwab Bank for most of my banking, and it is linked to my Schwab Brokerage account. My e-fund sits in the brokerage account, invested in a money market fund. It doesn't pay quite as much as the better HYSAs, but if I need to make an emergency payment it's simple to transfer money between the two accounts.

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Tech_geek23 OP t1_j6niinp wrote

That makes sense as well. I link all my accounts so the actions are easy but having 2 different apps and sites is not my favorite thing

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