High Yield Savings/Savings for College

[sweptaway]

My aunt and uncle have offered a generous annual contribution to DS's college fund for the next ten years. I'm not ready to pull the trigger on a 529 yet for various reasons; my aunt suggested we open a high yield savings account online. Do you have one you love? Or another great suggestion for long term savings? 

[McBenny]

Sept 17, 2024 13:35:40 GMT -6 sweptaway said:

My aunt and uncle have offered a generous annual contribution to DS's college fund for the next ten years. I'm not ready to pull the trigger on a 529 yet for various reasons; my aunt suggested we open a high yield savings account online. Do you have one you love? Or another great suggestion for long term savings? 

I was always taught a high yield account was for short term savings goals. 

I personally would do a Roth IRA. 

[spicysalmonroll]

Yea 10 years is a long time to be sitting in any type of savings, I'd invest it in a brokerage account.
The 529 is not awful now that it can be rolled into a Roth (up to 35k).

[sweptaway]

Right now I need an account for it to land in short term while we figure out a long term option.

[rhymeswithdisco]

I love my Wealthfront high yield savings account.

[roselab]

I have a high yield savings acct from AmEx that I've been happy with.

[spicysalmonroll]

The ones I mostly see on finance groups are Ally, Capital One, and Sofi. I have had capital one for over a decade.

[piratecat]

If you're looking at relatively short term I'd also look at local credit unions for good rates on CDs. Ours has rates that are comparable to the online accounts.

[blurnette989]

Sept 18, 2024 6:53:46 GMT -6 piratecat said:

If you're looking at relatively short term I'd also look at local credit unions for good rates on CDs. Ours has rates that are comparable to the online accounts.

I was going to say this. If you still decide on shield yield savings accounts, check with credit unions. I currently do a year to year CD for a small amount of our emergency savings through our credit union. I'm currently at 4.9%. it's perfect because I can pull out money at any time, and it's only the earnings that have to stay at least a year to not be penalized. The terms are very nice and I earn more than I would otherwise.

[piratecat]

Sept 18, 2024 8:41:42 GMT -6 blurnette989 said:

Sept 18, 2024 6:53:46 GMT -6 piratecat said:

If you're looking at relatively short term I'd also look at local credit unions for good rates on CDs. Ours has rates that are comparable to the online accounts.

I was going to say this. If you still decide on shield yield savings accounts, check with credit unions. I currently do a year to year CD for a small amount of our emergency savings through our credit union. I'm currently at 4.9%. it's perfect because I can pull out money at any time, and it's only the earnings that have to stay at least a year to not be penalized. The terms are very nice and I earn more than I would otherwise.

I love credit unions. I recently switched to the one across the street from our house and I have to go fairly regularly and everyone knows me and I love it. 

[McBenny]

Sept 17, 2024 17:27:39 GMT -6 sweptaway said:

Right now I need an account for it to land in short term while we figure out a long term option.

I would still do a Roth. They are so easy and simple. 

If not that, a CD. 

[lameyerbobonov]

If you're okay with locking the funds for a specific period, CDs can offer higher interest rates compared to savings accounts. Consider laddering CDs for better liquidity.

[gimmeaQ]

we also do a Roth IRA for each kid