Best place to accumulate a bigger cash position.
 

Lately, I just don't feel like reinvesting all of my dividends. I feel as though I'd rather have a bigger cash position, at least for the time being.

A few weeks ago, I saw an ad in the Parade Magazine by Synchrony Bank for an account called Optimizer+ plus. They have a high yield savings account that pays .95 % APY. I was told this bank is 80% owned by GE.
This would not be online banking; I don't want online banking. I would mail them a check and if I ever need cash I would be able to call them and have them mail me a check. But it would not be my purpose to use it for everyday cash needs because I already have that well covered.

I haven't done a lot of research on this and wonder what your opinion would be. Right now my cash is parked with a local checking account and 2 money market brokerage accounts and getting a very small fraction of 1%.

I would do a lot more research, than asking for an online opinion.........before sending them a check.
Here is one review I saw from a Google search.

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I chose this savings account based upon competitive interest rates and good customer ratings. I have been repeatedly disappointed. I should say that I have 6 other online banks, all with much better service than GE offers. First off, the application process is flawed. I completed the application but received no confirmation. During the completion, I couldn't figure out how to link another bank for deposits using the usual online verification process. Ugh, I was stuck doing this by mail. Later I realized that "random payment" indicated an online process. So after I snail-mailed the deposit slip from my other bank and an authorization letter to link the account for transfers, 2 weeks passed.

I had to contact them to find out that they couldn't locate the complete account number, although this is displayed on the deposit slip. Contacting them? I gave up on waiting on hold on 2 occasions and settled for email response in 24 hours. Nothing like the immediate Chat help feature at Ally. The initial deposit was held for 12 days before it was made available.

Furthermore, I couldn't find their routing number anywhere on the website, spending way too much time looking for it, resorted to another email, waiting another 24 hours.

So, the website has poor functionality and the ability to contact them is painstaking. Choose Ally and/or CIT bank over GE Optimizer -- hands down.

Ally Bank is offering .90% APY for a savings account. However, it is an online account. We use Ally and it is a very user friendly account. We are very satisfied.

[QUOTE=fraurauch;950786]Ally Bank is offering .90% APY for a savings account. However, it is an online account. We use Ally and it is a very user friendly account. We are very satisfied.[/QUOTE

If your ex military, Penfed,has a 1 year CD rate of 1.21 percent.

I don't know how much cash you are talking about but <1% is a joke. You might as well stuff it in a safe deposit box. There are lots of fairly safe investments out there to park your cash....banks are not on the list.

Like.....?

And they would be?

Village Pl - yesterday you said

"I too have been making all of my own decisions for about the same length of time and couldn't be happier with the results, despite the fact that I have been through 3 major market crashes. And I completely agree that investing need not be complicated.

I guess I broke a lot of rules by never being in a mutual fund; I just pick my own stocks. Lately, I feel as though I should be more diversified but I'll stick with what I have until it's time to take some profits off the table. Then when the next buying cycle comes around, I'll search for some new names to add to my list."

I'm a little confused now.


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In the past, seniors relied on decent interest rates. However, thanks to the FED seniors have been thrown under the bus in favor of big hedge fund/investment brokers who are reaping what the FED has sown on this sugar high.

The FED's position today is as central planner for our economy and it has held that control too tightly for too long .

i am using this period to move some cash legally via charitable gifts with the idea that if I can't earn interest on it a last I can minimize the loss by transferring it with no tax penalty to meet the present and future needs of my family

Ten years ago (2004) one year cd's paid about 1.5%. That was a wake-up call to not count too heavily on those instruments and also not on money market funds. But then there were other avenues to earn better interest rates such as corporate bonds and REITs. Still though, advisors began telling their clients to take a larger position in equities.

To find a decent interest rate today is near impossible. The 4% rule in selling your portfolio is popular, but you needed to change your mix to make it work.

I took your advice and did some online research. I went to Bankrate.com and Synchrony Bank was second from the top of their list for interest at .95% APY. The Safe & Sound rating system gives them five stars.

As far as service: It seems those who complain the most are those who require the most service for making payments and money transfers etc.. I would just mail them a check two or three times a year and forget about it. No service needed. No worries about snail mail.

About what? I have been narrowly focused on stocks for several years now. The last time I paid any attention to banking was about 6 or 7 years ago when I had several out of state jumbo CDs. Don't you think it's interesting to get other points of view and see what's going on in the minds of others?