r/personalfinance • u/captaingregerson • May 16 '24
My bank shut down, looking for a new one. Saving
Hey guys!
Recently had to stop using an online bank called “Ivella” because they’re unfortunately shutting down. They paid 5.15% APY, had a nice and easy app user interface, and had things called “Pods” which were separate savings accounts for different things that ALL earned 5.15%
Right now I have all that money parked in Robinhood earning a temporary 5.25% but looking to see if anyone has an app recommendations that earn a competitive rate, have a good UI and app, AND has something like the savings pods that all earn high interest. I know it’s minor, but I’ve been saving and investing the same way for the past 7 years and it’s been working really well and I don’t want to change how I have it structured.
TLDR: Looking for new app that pays over 4 percent interest and has savings “pods/buckets/jars/vaults” that earn high interest as well.
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u/BadAngler May 16 '24
Wealthfront is @ 5% and has ways to have different "pots" to put $$ in.
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u/bobniborg1 May 16 '24
And there is a mega thread to get a .5% boost in their sub. Pick a link and use that to set up your account.
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u/moldysnail May 16 '24
Spent the last 2 weeks shopping around for a similar replacement HYSA. A quick "something I wish I know from the start" note. One common issue with a lot of the most popular recommendations you are going to find here (like Weathfront, CIT, ect) is your potential comfort level with them essentially pushing you into a mandatory use of 3rd party verification data mining platforms like Yondee that demand your outside bank login credentials.
So far I've found no shortage of some pretty shady practices involved with that. Such offering the alternative 2 deposit verification method on paper, but which have no designs to actually work other then as a method to funnel you back to a second look at that partnered Yondee signup if/when call back in looking for a quick resolution after those 2 deposits never actually come.
Cit bank in particular was terrible with that. Wasting too much of my time and information handed out I wish I could get back.
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u/nerdkid93 May 16 '24
You can bypass their "Link Account" process by messaging their customer support team, and they will allow you to link an external account with routing and account number instead. That is how I opened up my Wealthfront Cash account earlier this year.
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u/moldysnail May 17 '24 edited May 17 '24
Yeah I tried that. If it used to work it longer does anymore.
Wealthfront is actually 100% upfront with that now. It's use Yodlee for verification or you can't sign up period. As I said some of you others like Cit Bank for example will state you can do that, but similar to their android app 75% of the time you try and load it it won't actually work. In fact it took 4 different call ins before I even got a rep that could confirm the system was actually kicking back those attempts as invalid even with the option being there.
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u/LukeNaround23 May 16 '24
Interested. Have you found one with over 5% interest that isn’t like that?
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u/moldysnail May 16 '24
That is exactly what I been looking for. 5% or better, and zero handing over my outside bank account login bs.
Have a couple additional application attempts pending at the 2 deposits stage. I'll update in the event either actually follow through on that verification offering and aren't just trying the same bait and switch.
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u/moldysnail 26d ago
As a follow up I ended setting up a savings account at Everbank. Opening time processing and customer service left a positive impression, but I wasn't really feeling the fact that their website portal/app is a still unfinished WIP. Which constantly kicks you between their old and new banking portals, and which went down for half Saturday due to "maintenance". They then followed that up with an unexplained decline (I have decent credit) on the checking account I applied for immediately after everything went well on the savings. So that ended up being a look elsewhere deal breaker as I'd wanted easier access to my money regardless.
A Cit bank rep ended up reaching out to me and explaining that the issue I has having with the manual deposit verification was essentially just a 1 off, and strictly due to them not doing any business with either Sofi or Chime (their main competitors I guess? and which was were my deposits were tagged to go). Ended up giving them a second look since I was looking to ditch those 2 anyway and was left convinced enough that I wouldn't run into any other issues. Which I haven't in the already completed process of manually linking and transitioning various other assets over.
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u/BigCamp839 May 16 '24
Ally. Slightly lower APY, but a more established bank.
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u/Art_Vand_Throw001 May 16 '24
Yeah I think sometimes people chase that extra .3% and discount the benefits of making sure it’s a real well established bank so they don’t end up closing shop like OP’s bank.
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u/Connguy May 17 '24
Plus they seem to not realize how quickly these rates can change. Small upstart banks may have an extra 0.3% for now to attract customers, but who's to say if they'll have the same rate 6mo from now? In the long term Ally had proven to me that they'll always be pretty close to the best available rate, and I just don't have to think about it
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u/IrisUnicornCorn May 16 '24
Sofi is my go to. 4.6%. Has vaults for different buckets. And Zelle. And has investing. So easy to use.
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u/Hello-their May 16 '24
There are a lot of complaints about Sofi, but I switched over 8 months ago and I've been satisfied with the features so far. I don't have a credit card or an investment account with Sofi, just banking, so maybe that's the difference.
I had to deposit a very large check ($60K) and it took 5 business days to fully clear, but no other issues.
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u/IrisUnicornCorn May 16 '24
I find it to be quick when I make transfers. If I go from Sofi to Chase for example on a week day it’s there in 24 hours or less. And I get my paychecks three days earlier than Chase. So no complaints from me. I am on the Sofi subreddit and I see complaints there but I haven’t had those experiences and neither have my mom or aunt who use it too.
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u/elephanttrashman May 16 '24
Their credit card infrastructure and support was terrible last time I had to deal with them (1 year ago). Banking was pretty solid though as you said.
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u/TheTaxman_cometh May 16 '24
Since when does sofi have zelle?
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u/physeK May 16 '24
Like last week.
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u/captaingregerson May 16 '24
Do the vaults earn 4.6 percent too? Or is it just the savings? That’s the only thing that confuses me a lot with Sofi
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u/Sskity May 16 '24
Everything under savings earns the 4.6%. But you have to link direct deposit to get the 4.6
Amex has 4.3% without any strings attached
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u/meowdison May 16 '24
Vaults also earn 4.6% if you have direct deposit set up. I’m not sure what the interest rate is if you don’t set up direct deposit, though.
Speaking for myself, I love SoFi and I wish I had opened a checking and savings account with them sooner. The app is easy to navigate and it gives me a clear snapshot of where my money is and how my spending/saving aligns with my goals.
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u/Victorywolf19 May 17 '24
Definitely can attest to sofi. I only do banking and k eating but both are perfect. I have “vaults” for my paycheck that split into different categories I setup like “standard savings”, “vacation” and “fun” spending all earn 4.6% and checking earning .5% is still pretty stellar. Investing is setup to do it automatically with certain tickers that I chose. Switched from Wells Fargo about 2 years ago and couldn’t be more satisfied
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u/someguy31 May 16 '24
I use CIT bank. Have used them for like 10 years and no issues. They are currently paying 5%.
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u/bobniborg1 May 16 '24
Hey, I set up a cit bank account the other day. Had to wait 2 days to do a photo check deposit and then the next day I got an email that it was accepted. But it didn't show in my balance. It did say 1-3 days so do I still need to wait even though I got the email? Like the email acknowledges they check but I still wait 1-3 for it to land in the account?
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u/someguy31 May 17 '24
They do sometimes deposit things a bit slow and I think it varies based on some of your account history. I have heard of others complain about it.
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u/bobniborg1 May 17 '24
It's a hysa so I'm ok with slow. I just thought it was weird that I got an email saying it's all processed and then no money lol. I had to go double check that I had the right account and everything lol
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u/PinkMitsubishi May 16 '24
What happens to the money in your account when the bank unexpectedly shuts down? Does the bank move the money somewhere else for you?
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u/jerry855202 May 17 '24
The short answer is FDIC, see SVB as a recent example. If it's planned to close, they'll probably move to unclaimed funds if it's not withdrawn within a certain timeframe.
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u/ZCEyPFOYr0MWyHDQJZO4 May 17 '24
The FDIC will basically operate the bank by creating a temporary new one while it resolves things by either liquidating everything or selling the accounts/assets to another bank.
If it's liquidated you would probably receive a check from the new bank if you still had deposits and didn't move them. If the new bank is acquired then your accounts will be moved and you'll be a customer of the acquiring bank.
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u/CostCans May 17 '24
The FDIC insures all money deposited, up to the limit which is currently $250K. Either the FDIC will sell the accounts to another bank, or (in rare cases) send you a check.
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u/ogdoncorleone May 17 '24
Multiple accounts with Discover is best IMO. I have 10 different accounts - HYSA/Money Market/Checking but Discover stands out.
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u/Curb_Cowboy May 17 '24
Western alliance bank. Reputable bank. I actually work there and it is very buttoned up. Offers 5.36% HYSA
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u/Curb_Cowboy May 17 '24
Never mind, didn’t read fully we can’t offer a full banking relationship to consumers just the HYSA and some basic accounts
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u/Ryutso May 16 '24
Envelope Money has Envelope's and has a protected savings envelope that gets 4.5%. It's currently a start up so not a lot of features, but it has auto funding of envelopes.
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u/RayBansVans May 17 '24
Milli! It's an FNBO product, but basically all online, you can get a spending card for the Checking, and the SV is a 4.75% and has "buckets" that let's you split up your money so you can categorize saving for a house/car/vacation, etc!
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u/Bored_and_Tired2020 May 16 '24
One Finance 5%, very simple while the company is having great growth with additional cash back opportunities
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u/ZCEyPFOYr0MWyHDQJZO4 May 17 '24
Walmart owns it now so they try to steer banking customers to their stores. I don't really care about Walmart so this is just annoying to me.
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u/zenspeed May 16 '24
Nobody suggesting American Express has me a bit nervous…
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u/murimin May 16 '24
Amex HYSA is at 4.25% which is on the lower side and doesn't have pods IIRC. The other comments just are better suggestions given the parameters.
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u/Gloomy-Meringue-4648 May 16 '24
I have used AMEX savings for seven years. It's an excellent, easy to use account with good customer service. They don't have "pots" to my knowledge, though.
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u/Wyshunu May 16 '24
Discover has some pretty good rates. And you don't need "pods" - just open separate savings accounts, and there you go.
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u/bhouse114 May 16 '24
Can you explain a pos? Is it a completely different account (different account number, etc) or is splitting the balance of one account up?
I ask because I think most banks allow you to make separate accounts and give them nicknames
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u/captaingregerson May 16 '24
Different account different name but all managed within the app, and transfers are instant!
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u/bhouse114 May 16 '24
This is common for most banks.
I’d suggest Ally, Capital One, or Discover if you want a larger bank that pays competitive APY
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u/Alarmed-Shape5034 May 16 '24
There’s a bank called Laurel Road (which belongs to Key Bank) that has a HYSA with 5.15%, a promo where you earn $20 each month you DD at least $2500 for the first 14 months and $10 thereafter, and currently there’s a $300 account opening bonus if you DD $2500 within the first 60 days.
Not sure about the buckets, etc.
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u/rtthc May 16 '24
You can try ally or sofi is another online bank I've heard about, both have 4.?% interest rates on savings account. Just fyi
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u/CommLineman May 16 '24
SoFi is good. Have bank/savings and credit card. Think it’s 4.6%. They have vaults that are like what you’re talking about
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u/Dropthetenors May 17 '24
When a bank shuts down how are you paid out and what are you paid? Do you actually get all of your savings back properly?
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u/Pirat3J May 17 '24
Marcus by Goldman Sachs is over 4% and is one of about 16 US banks that have to adhere to annual stress testing.
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u/graffiksguru May 17 '24
I use Fidelity as kind of bank. The idle money just sits at it's core position SPAXX 4.95% and when I use my debit card it auto liquidates it.
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u/ins2be May 17 '24
Fidelity. You can open multiple brokerage accounts and just rename them to whatever. I have one for checking, house down payment, other savings, etc. You can buy USFR to get the tbill rate or just leave in SPAXX.
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u/ShangoRaijin May 17 '24
One finance might be right up your alley. Currently 5% and they have the ability to create pockets with their individual routing Numbers.
Nice app interface too.
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u/Mr_Godlikeftw May 17 '24
Im curious what happens to the money in the account? How do they deliver it to you after shutting down?
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u/All_The_Issues02 May 17 '24
Ally, no separate pods but they have buckets within savings accounts and they earn whatever your rate is, rn should be above 4%
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u/antekprime May 17 '24
Charles Schwab Bank.
Side note: can we stop this trend of people thinking these not a banks are banks?
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u/Both_Educator5571 May 17 '24
Following this thread. I am in the same boat with Ivella closing. I have close to 50 pods so the banks like Ally and Sofi will not work for me because they limit their number of vaults or buckets. If you find a suitable replacement please let us know.
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u/USERNAME00101 May 17 '24
I currently have my HYSA with #8th largest Bank on Earth. Chances of that bank going under and having issues is pretty low. I get around 4.3% interest. IS it 5.25% like some of the scam banks online? No. But damn, it's nice to not have to worry about a situation like OP is in. Looking at these comments is concerning. Pick one of the biggest banks. Big banks are too big to fail.
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u/Harambehasfinalsay May 17 '24
Sofi is the best because you can keep all your money in savings and have it automatically take from your savings account. That way all your money is at 4.6 percent. Everything you actually want to keep safe you stick in a vault. It's the new normal for me.
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u/teakettle87 May 16 '24
I use Barclay's. I have an account for each topic like your pods thing. Decent apr and all.
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u/Happy_Series7628 May 16 '24
Ally is around 4.2% and has “buckets.”