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Post by sweptaway on Sept 17, 2024 13:35:40 GMT -6
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?
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McBenny
Unicorn
#sickomode
Posts: 52,442 Likes: 297,903
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Post by McBenny on Sept 17, 2024 16:18:17 GMT -6
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.
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Post by spicysalmonroll on Sept 17, 2024 16:54:12 GMT -6
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).
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Post by sweptaway on Sept 17, 2024 17:27:39 GMT -6
Right now I need an account for it to land in short term while we figure out a long term option.
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Post by rhymeswithdisco on Sept 17, 2024 17:31:29 GMT -6
I love my Wealthfront high yield savings account.
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roselab
Silver
Posts: 438 Likes: 803
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Post by roselab on Sept 18, 2024 6:11:34 GMT -6
I have a high yield savings acct from AmEx that I've been happy with.
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Post by spicysalmonroll on Sept 18, 2024 6:17:13 GMT -6
The ones I mostly see on finance groups are Ally, Capital One, and Sofi. I have had capital one for over a decade.
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piratecat
Diamond
Posts: 36,319 Likes: 145,099
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Post by piratecat on Sept 18, 2024 6:53:46 GMT -6
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.
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Post by blurnette989 on Sept 18, 2024 8:41:42 GMT -6
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.
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piratecat
Diamond
Posts: 36,319 Likes: 145,099
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Post by piratecat on Sept 18, 2024 9:14:49 GMT -6
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.
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McBenny
Unicorn
#sickomode
Posts: 52,442 Likes: 297,903
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Post by McBenny on Sept 18, 2024 16:11:53 GMT -6
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.
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Post by lameyerbobonov on Sept 26, 2024 0:38:17 GMT -6
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.
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gimmeaQ
Opal
Posts: 7,774 Likes: 34,975
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Post by gimmeaQ on Sept 26, 2024 8:33:04 GMT -6
we also do a Roth IRA for each kid
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