I spoke the other day about rich people whingeing that they don’t have enough to retire in luxury. In today’s news there is a 67 year old man who hates his job and wants to retire. However the poor thing only has $700K saved up. This only gives him $28K a year in interest. 
Poor old dear still hasn’t paid off his mortgage so how will he manage on that?
How the other half live.
Correct! I’m using Capital One’s 360 Performance Savings which has 3.6% APY. It’s nice because they don’t have transaction limits like some savings accounts so I can basically treat it like a checking account and get that APY on my whole balance
What’s the catch?
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I just though the rate sounded high, but that’s probably because I’m from Sweden. Raise the interest on loans and lower it on savings, that’s the Nordic model for ya.
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You’re getting less return (a little over 0.5%) that you’d be able to get by buying Treasury bills, which are also exempt from state income tax. By basically letting the bank do that for you and skim that half percent off the top for themselves you get much more liquidity and quality of life. This is how all savings accounts work—Capital One and others offering higher rates versus the 0.5% APY a lot of big banks give us them accepting less return on your banking business in hopes of getting you entrenched in their ecosystem.
Brokerages like Fidelity do offer auto roll service for Treasury bills which helps with the QoL issue, but your money still won’t be available at a moment’s notice like it would be in savings
You need money to save in the first place and if you have money to put away, it’d most likely do better in non risky investments but then it’s not liquid
Ooh I might need to get that, I already have a credit card through them and that’s better than what I’m currently doing
You should have one if you can get one.
Also consider using a CD ladder if you have savings youre okay with not accessing for a while (if the rates are better than a high yield saving account)
Yeah Capital One has been pretty good for me as far as banks/CC issuers go. Granted my only experience is them, BofA, and US Bank, and those two aren’t exactly stunners for most people…