Recent comments in /f/personalfinance

neuro_turtle t1_je34f09 wrote

Reply to comment by Flopcandy in [Beginner] In my location, my bank (PNC) has a savings account interest rate of 0.03%. Capital One is 3.4%. American Express is 3.75%. Is there any reason not to switch to one of those? by Flopcandy

I do exactly this between PNC and Ally - it’s not a problem on the PNC side. Just be aware that a lot of online banks with high interest rates have limits on the number of transactions/month. Ally’s limit is 6. So instead of direct depositing into Ally and transferring out, I direct deposit into PNC then transfer a post-bills lump into Ally.

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neuro_turtle t1_je340bd wrote

Reply to comment by airportwaiting in [Beginner] In my location, my bank (PNC) has a savings account interest rate of 0.03%. Capital One is 3.4%. American Express is 3.75%. Is there any reason not to switch to one of those? by Flopcandy

Did you open it when you lived in a different state? I also have this account and I was having serious problems figuring out the “rules” since what was listed on the website for my zipcode was not actually happening to my account. (I was being charged fees that weren’t listed for my zipcode.) Anyway, I had to call them to figure it out and they told me that it matters where you lived when you opened the account, not where you live now.

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KRed75 t1_je33yo4 wrote

Reply to [Beginner] In my location, my bank (PNC) has a savings account interest rate of 0.03%. Capital One is 3.4%. American Express is 3.75%. Is there any reason not to switch to one of those? by Flopcandy

I use Synchrony. Their HYSA is currently 4%. I keep only what I need to pay bills at my brick and mortar bank. When I sold my house, I deposited a $250K check at my wells fargo branch and they were all over that wanting me to invest with them. I just laughed and told them that the last time I "invested" with them, I lost $9K of my $10K investment and after 10 years, it never recovered. I transferred every penny of that $250K to Synchrony.

There once was a time when the brick and mortar banks paid great interest rates. I was making over 6% on a first union savings account around 2000. Now, they are wells fargo and I'm getting a whopping $.06 / mo on a $10K balance.

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JungleCrab OP t1_je3313o wrote

Reply to Deferred Interest Credit Card by JungleCrab

Thank you everyone for informing me! I wasn't sure since this is my first no interest type card. I will make sure to pay the minimum and to pay off the rest before 12 months.

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Psychological_Turn72 t1_je32qec wrote

Reply to [Beginner] In my location, my bank (PNC) has a savings account interest rate of 0.03%. Capital One is 3.4%. American Express is 3.75%. Is there any reason not to switch to one of those? by Flopcandy

Definitely move your money to a high yield savings account. Look into CDs right now too if you can tie the money up for 11 or 12 months. Those rates are even more favorable. Also look at purchasing I bonds from the government. These will also tie your money up for at least a year.

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lilfunky1 t1_je32q4g wrote

Reply to Deferred Interest Credit Card by JungleCrab

There is always a monthly minimum payment.

Failure to pay this minimum amount on time every month will likely cancel the promotional deferred interest and you'll immediately start getting charged interest and/or even be charged retroactive interest

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wanttostayhidden t1_je31tyx wrote

Reply to Deferred Interest Credit Card by JungleCrab

I have never seen a deferred interest promo that didn't require minimum monthly payments. Also, be aware that the minimum payments are usually set too low to pay it off in time. Make sure you pay the full amount before the end of the promo so you don't get hit with all the back interest.

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crowd79 t1_je31r6b wrote

Reply to Deferred Interest Credit Card by JungleCrab

You still have to make the minimum monthly payment each month. Typically it is 1% of the card balance or so. When month 11 comes, you pay off the remainder of the balance in full to avoid interest.

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