ReportWire

Tag: High Yield

  • CIT Bank $225/$300 Savings Bonus + 3.85% APY; New & Existing Customers ($25k/ $50k Deposit; No Hold Period) – Doctor Of Credit

    [ad_1]

    Update 9/24/25: Deal is back, APY lowered to 3.85%. If you did the previous PS2025 deal you are not eligible. Hat tip to reader Gadget

    Offer at a glance

    • Maximum bonus amount: $300
    • Availability: Nationwide
    • APY: 3.85% with a deposit of $5,000+
    • Additional requirements: Use promo code and meet deposit threshold
    • Hard/soft pull: Soft
    • ChexSystems: Yes  (comments here suggest they might be Chex sensitive)
    • Credit card funding: None
    • Monthly fees: None
    • Early account termination fee: None
    • Household limit: None
    • Expiration date: Unknown

    The Offer

    Direct Link to offer

    • CIT Bank is offering a bonus to new or existing customers who transfer over funds. To get the bonus, you have to first signup/enroll using promo code PS2025 and then make one or more deposits in the following 30 days.
      • Transfer over $25,000 in new deposits and get $225.
      • Transfer over $50,000 in new deposits and get $300.

    The Fine Print

    • All funds deposited to qualify for the bonus must be new funds from a source outside CIT Bank. Funds already on deposit with CIT Bank are ineligible.
    • CIT Bank will deposit the qualifying bonus into the customer’s enrolled account within 60-days following the 30-day funding period. The enrolled Platinum Savings account must be open at the time of the bonus payment to qualify.
    • There is a limit of one Platinum Savings promotional offer per account and per Primary customer. If multiple Platinum Savings accounts are opened, only one account per primary account owner is eligible. Custodial accounts and Trust Accounts are not eligible.
    • The value of the $225 or $300 bonus will be reported as interest income on IRS Form 1099-INT for the calendar year in which it was paid. The recipient is responsible for any applicable taxes.

    Avoiding Fees

    Account has no fees to worry about.

    Our Verdict

    This is a nice bonus since the account earns 4.30% which is from the better rates out there, and with this promo you’ll earn an additional $225/$300. I like the flexibility of this offer without any hold period (just have the funds there on Day 30), and I might get in on this one.

    We’ll add this to our List Of Best Bank Bonuses.

    Hat tip to Eric and TJ

    Useful posts regarding bank bonuses:

    [ad_2]

    Chuck

    Source link

  • [Shutting Down 11/25] Ivy Bank Indexed Savings Account: Indexed To One-Month U.S. Treasury Yield – Doctor Of Credit

    [Shutting Down 11/25] Ivy Bank Indexed Savings Account: Indexed To One-Month U.S. Treasury Yield – Doctor Of Credit

    [ad_1]

    Update 10/24/24: Shutting down on 11/25.

    Update 5/12/23: Paused new signups again

    Update 3/8/23: They’ve brought back the Indexed Savings accounts and new customers can again signup for this account. Right now the rwate is 4.75% APY. Update 2/8/23: Seems this Indexed Savings account isn’t taking new customers anymore. 

    Original Post:

    Ivy Bank Indexed Savings Account is a high yield savings account which is designed for savers seeking a competitive rate without the hassle of having to frequently move money from bank to bank. The rate resets at the beginning of each calendar month and is indexed to the One-Month Treasury Yield. It’s an FDIC-insured account with a $2,500 minimum and is available nationwide with the exception of California.

    Direct Link to Ivy Bank Indexed Savings Account

    Ivy Bank has been offering a high yield savings account, and I believe they’ve been doing a good job at keeping up with rate increases to match the top rates offered. (Maybe they are a CFG competitor for best simple high yield account?) This indexed account is a specialty product for someone who wants to rates matching the monthly Treasury yield.

    This isn’t very different from buying U.S. Treasuries with auto-repurchase set up, if you are okay locking up funds for 30 days. There’s also another similar CD product from Merchants Bank which tracks the U.S. Treasury rates. This Ivy Bank account somehow seems simpler for someone who is more familiar with traditional savings accounts. Another advantage of this account is that the funds are not locked up at all.

    One important downside to note: U.S. Treasuries are exempt from state and local taxes while this Ivy Bank account presumably is not exempt.

    Personally I haven’t gotten around to doing any of these, and have been using a brokerage money market account which also more-or-less tracks the current Treasury rates since it’s mostly based on Treasury purchases.

    Hat tip to andi

    [ad_2]

    Chuck

    Source link

  • Pondering CD Annuities (Multi-Year Guarantee Annuity; MYGA) – Doctor Of Credit

    Pondering CD Annuities (Multi-Year Guarantee Annuity; MYGA) – Doctor Of Credit

    [ad_1]

    Update 9/4/24: readers discovered that there are some annuities which are taxed immediately each year and those might not have the 10% penalty for those who are less than 59 1/2 years old. Some of these offer better yields than long term CDs, so these might be something to think about.

    Original Post 5/20/22:

    A reader recently mentioned using fixed annuities called MYGAs (Multi-Year Guarantee Annuity), or CD annuities, as an alternative to the traditional CD. Let’s take a quick look.

    Here are two lists (link, link) you can look through to get a feel for the rates offered on MYGAs.

    MYGAs are quite similar to traditional CDs in that you deposit a certain amount of money for a fixed amount of time and you get the money back with the interested added on top after the fixed timeframe. Like CDs, your money is often locked up for that fixed timeframe and you may have to pay a penalty or lose the interest gains if you withdraw before the agreed timeframe.

    The primary way that MYGAs differ from traditional CD’s is that they are issued by insurance companies instead of banks. This means there’s no FDIC insurance backing you up in case of default. Most people will only buy an annuity from an insurance company highly rated by respected rating agencies.

    (It’s worth noting that you aren’t entirely dependent on the insurance company going under water since all insurance companies are required to belong to a state guaranty association. These associations guarantee balances up to the state’s statutory limit, typically $250,000. As I understand it, you won’t really lose money unless all insurance companies in your state go bankrupt since they are all ‘tied together’ to cover each others balances. Still, for larger investments, it’s definitely important to research the insurer well and make sure they are top rated.)

    The most important distinction, though, between CDs and MYGAs is that the latter is meant as a retirement product, and thus comes with is a 10% penalty for withdrawals made before the age of 59.5. Someone who is currently 50 and wants to buy a 10-year MYGA won’t have any penalty issues given their 60 year age at time of withdrawal. Often the MYGA rate might be high enough to be worth buying even after factoring in the 10% penalty.

    MYGAs are typically between 3 and 10 years. Interest gets compounded annually. Each MYGA will have a different minimum investment amount, e.g. $10,000 or $20,000 or more.

    A major advantage to MYGAs is the ability to continually renew the annuity (or even exchange it directly into a new annuity) and take all of the gains at a future date of your choosing, thus delaying a taxable event until a more favorable time. 

    It’s important to note that there are all types of annuities out there, some of which are variable or tied to the stock market, some which pay out in monthly increments, etc, etc. Here we’re only discussing fixed annuities which offer a fixed return percentage for a set number of years and operate much like a CD with an initial deposit and a payout at end of term. Before locking into anything, be sure to do your research in understanding the product offered. 

    Conclusion

    In the end, there are a few scenarios that MYGAs make sense:

    • MYGAs can make sense as a retirement plan and a means of getting a predictable income stream in those years. (Of course there are many other types of annuities which work well for retirees as well.)
    • They can also make sense for someone who plans to hold cash for many years and who doesn’t plan on needing the cash any time before they are 59.5 years old.
    • Finally, an MYGA can make sense for anyone as a means of holding cash if the rates are significantly above traditional CDs. The MYGA rate might be superior to CDs even when factoring the 10% penalty.

    Often, there can be a mixture of the above scenarios which can make an MYGA useful, especially after factoring in the tax deferment flexibility that these annuities offer.

    Feel free to chime in below with your own thoughts or corrections. Also, please let me know if you find this kind of content useful which we’ll keep in mind for the future.

    Related:

    [ad_2]

    Chuck

    Source link

  • Treasury Direct Ending Tax Refund via Paper I-Bonds Option – Doctor Of Credit

    Treasury Direct Ending Tax Refund via Paper I-Bonds Option – Doctor Of Credit

    [ad_1]

    When someone overpaid their taxes, the IRS gives them an option to apply the over payment for the next year, to get an electronic bank deposit refund, or to get a refund in the form of paper I Bonds. The I Bond refund option is going away on January 1, 2025, per this U.S. Treasury press release. The regular electronic I Bonds limit remains unchanged at $10,000 per year.

    The paper I Bond tax refund was the last vestige of paper I Bonds since they went electronic in 2012. The paper version is a pain to deal with, and the reason some people found it interesting was due to the fact that it increased your annual I Bond limits above the standard $10,000 cap. By taking a paper I Bond refund it was possible to get up to an additional $5,000 in I Bonds per year.

    This option is going away January 1, 2025. Those who have not yet done their 2023 tax returns can still take advantage of the paper bond option until that time.

    Hat tip to tipswatch

    [ad_2]

    Chuck

    Source link

  • [WA] Express Credit Union 9% CD On Up To $5,000 – Doctor Of Credit

    [WA] Express Credit Union 9% CD On Up To $5,000 – Doctor Of Credit

    [ad_1]

    The Offer

    Direct Link to offer

    • Residents of Washington state: in honor of Express Credit Union’s 90th Anniversary, they are offering a special Certificate of Deposit rate. From February 9 through December 9, on the 9th of each month when you open a new CD you’ll get 9% APY on balances up to $5,000.

    Our Verdict

    This is a good rate since you’ll earn $450 on the $5,000 which is a solid couple hundred dollars more than you’d otherwise earn. There is still the hassle of setting up a new membership with the credit union and dealing with a possible hard pull, etc. Let us know how it goes if you try.

    [ad_2]

    Chuck

    Source link

  • Robinhood Gold Free Benefit: $1,000 In Margin Loans – Doctor Of Credit

    Robinhood Gold Free Benefit: $1,000 In Margin Loans – Doctor Of Credit

    [ad_1]

    Yesterday I learned a cool tip from the good folks on Bogleheads forum:

    Robinhood Gold costs $6.99 per month or $75 annually. Others pay $5/month or $50/year. One of the benefits of Robinhood Gold is that your first $1,000 in margin loan is completely free. (After that the cost is 8% annually.) See a full list of Robinhood Gold benefits here.

    Robinhood Gold members don’t want to invest on margin can still pull out that free $1,000 and invest it somewhere safe to earn some interest.

    In order to be able to pull out the $1,000, you’ll need a collateral. For example, if you have $2,000 in regular investments in your Robinhood account you should then be able to pull out the $1,000 margin loan. Also note, in order to use the full $1000 of free margin you can’t have a cash balance. For example, if you have $2000 invested and $1000 in free margin, and then you deposit $100, your margin usage will go down to $900.

    To be clear, margin investing is not something I personally do, nor recommend for most people. Taking this free $1,000 from Robinhood and investing it in a risk-free fund like SGOV is an easy way to offset some of the $75 annual cost for Robinhood Gold.

    Robinhood Gold is becoming increasingly interesting to a lot of readers in order to gain access to their 3% IRA match bonus offer and their upcoming 3% credit card.

    [ad_2]

    Chuck

    Source link

  • [Update: Memory Bank Closing Down] Powerful High Yield Checking + Savings Account Combo with Memory Bank – Doctor Of Credit

    [Update: Memory Bank Closing Down] Powerful High Yield Checking + Savings Account Combo with Memory Bank – Doctor Of Credit

    [ad_1]

    Update 3/9/24: If case anyone still has this account from when we wrote about it in 2019 – Memory Bank is apparently closing down at the end of March. You can see this other (dated) post for some more options: What’s the Best High-Yield APY Checking Account Option? (ht reader Steve)

    Original Post 1/8/2019:

    A while back, in the post What’s the Best Simple High-Interest Checking Account?, I pointed out that from all high-yield accounts available none are checking accounts, with the exception of the 1.6% Memory Bank checking account (direct link).

    At the time, I don’t think Memory Bank offered any high-yield savings account, but since September they’ve been offering a competitive money market account, and they’ve continued bumping up the APY rate as rates rise. That makes me optimistic they’ll continue maintaining their spot near the top of our Best High-Yield Savings Rates list.

    Not everyone has much cash on hand, but there are some people who keep large stashes of cash, either as their MS float, because they don’t want to invest all their money, or similar reasons. Many banks like Ally and Discover offer great rates on savings and a terrific full service checking accounts, but no interest is earned on the funds held in the checking account.

    This Memory Bank combo creates a new option of getting a highly competitive savings rate with their money market account (currently 2.40% APY which is near the top of all rates available) AND a decent rate on funds in the checking account (currently 1.60% APY). This is especially useful for someone who moves large amounts of cash, and sometimes wants to put into savings for a few months before they’ll need it again. Presumably you can easily transfer funds between the money market and checking accounts.

    [ad_2]

    Chuck

    Source link

  • Moomoo: 8.1% APY Savings Account Rate For First 3 Months (Up To $20,000) – Doctor Of Credit

    Moomoo: 8.1% APY Savings Account Rate For First 3 Months (Up To $20,000) – Doctor Of Credit

    [ad_1]

    The Offer

    Direct Link to offer

    • Moomoo is offering 5.1% APY interest rate + bonus 3% during the first 3 months for new users who have never made a deposit before. Requires activation.

    The Fine Print

    • The promotional 8.1% APY rate (as of 01/11/24) is for new users who have never made a deposit before. The Base Rate is 5.1% APY, plus a 3% temporary boost is available once the coupon is activated. Actual APY earned may differ as the base rate may change. Moomoo is not a bank.

    • APY Booster Rate is effective for 3 months on up to $20,000 in the Cash Sweep Program once coupon is activated.

    Our Verdict

    Could be a solid offer for someone with cash on hand. This basically maxes out at a .75% bonus. (3 months is .25% of a year @ 3% = .75%; assuming your money would have otherwise been earning 5.1% – see this post for Best Savings rates.) For example, if someone puts in $100k it can be like a $750 bonus, or $1,500 on $200k, etc, etc. The fine print does limit the 8.1% promo rate to $20,000, and the gain from this deal is limited.

    Moomoo holds the funds at partner FDIC insured banks. We’ve written about Moomoo before for some of their other offers.

    [ad_2]

    Chuck

    Source link

  • Robinhood Gold 5% APY Cash Account ($6.99 Monthly Fee) – Doctor Of Credit

    Robinhood Gold 5% APY Cash Account ($6.99 Monthly Fee) – Doctor Of Credit

    [ad_1]

    Update 1/13/24: According to this fee schedule the monthly fee is now $6.99

    Update 12/13/23: It’s now 5%

    Update 12/16/22: Increased to 4%

    (Update 11/7/22: Now 3.75%)

    Robinhood announced today a new benefit of the Robinhood Gold subscription:

    • Get 3% APY on uninvested funds in your Robinhood cash account.

    Robinhood Gold membership costs $5 per month, and comes with a free 30 day trial. There are a few other benefits other than the higher APY rate for things like margin investing and few more, details here.

    3% APY is a very good rate on cash, at the top of what’s currently available at time of this writing. Hopefully Robinhood will continue to increase the rate if rates trend higher.

    The $5/month can be worth it for someone who trades a lot with Robinhood and lands up with large cash balances at times. Perhaps some will find it worthwhile the nice interest rate alone, though there are other accounts with similar or nearly similar rates which don’t have a monthly fee.

    Hat tip to readers Josh M and Erik

    [ad_2]

    Chuck

    Source link

  • Collapsing Crypto Yield Offerings Signal ‘Extreme Duress’

    Collapsing Crypto Yield Offerings Signal ‘Extreme Duress’

    [ad_1]

    The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

    Speculation And Yields

    This cycle has been super charged by speculation and yield, leading all the way back to the initial Grayscale Bitcoin Trust premium arbitrage opportunity. That opportunity in the market incentivized hedge funds and trading shops from all over the world to lever up in order to capture the premium spread. It was a ripe time for making money, especially back in early 2021 before the trade collapsed and switched to the significant discount we see today.

    [ad_2]

    Dylan LeClair And Sam Rule

    Source link