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I have this account, started a few months ago. Only drawback I've found is that if/when they increase the interest rate on their accounts, you have to manually request an increase each time. I started at 5.03%, now requested an increase to 5.25%. I messaged them in the app at 4:53pm, they responded and updated my rate at 5:03pm (exactly 10 min). I'm ok doing a couple minutes worth of work a couple/few times a year to maintain the highest percentage. Works exactly as promised otherwise, great rates.
As per their website FAQ...
The dollar limits at funding are:
Maximum to transfer in: $250,000.00
The dollar limits after your account is funded are:
Maximum per day in or out $30,000.00
Maximum per month $60,000.00
You may not make funds transfers in excess of limits described on the External Bank Transfer service.
We reserve the right to change from time to time the dollar amount of funds transfers you are permitted to make using our service.
I had the same experience today. Happened to check my account and found that my 5.09% rate had been downgraded to 4.5%. I spoke to CS on the phone and they raised my rate to 5.25%. I asked what the deal was with lowering my interest rate when rates are rising -- including the rates they offer new customers. He said that I just have to check my account every week or so to see if they do it again!
So basically, this is a great account for folks willing to call them on their BS. Apparently enough customers don't do that to make it worthwhile for them to play games like this.
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Poppy Bank offers 5.35% (5.5% APY), guaranteed rate for 180 days from account opening. I think that's better than tbills.
That's a promotional rate which drops to 0.5% once the promotion ends.
Naturally if you're willing to jump between different bank promotions, you can come out ahead, but you won't find a consistent higher return (not just rate, but tax advantaged return) compared to T bills or I bonds.
That's why you just buy every week and use 13 weeks option and have total 13 purchases, weekly availability. Some people like monthly but I plan to do weekly with total 13 purchases.
Why do 13 weeks? I do a ladder of 4 weeks and also buy every week. Easier to manage and reinvest all interest.
I thought about parking some cash here but after reading a lot of bad reviews I think I'll look elsewhere. The apparent bait and switch tactics on interest rates are such a hassle to deal with.
Can you explain what you mean by this. I am digging into TBills trying to learn all I can,. I have ~$75k i need to park somewhere.
You can buy Treasury bills that matures in 4, 8, 13..etc weeks time. The rate changes every week after the auction that occurs every thursday. So far it is around 5.4% which is better than what UFB is offering. For example, you buy a 4 week Treasury Bill of $10,000. Next tuesday the US treasury will withdraw 9,980 from your account. That 20 dollars is the interest you get for buying a $10k Tbill.(You get the interest upfront). After 4 weeks, US Treasury will deposit back $10k into your account since the 4 weeks have matured. Think of it as a short term CD only you are only subject to federal taxes and no state taxes for all the interest you earn. This makes your money more liquid since it is only held up for 4 weeks. I am sure you can read up on this with more detail, this is just a broad example.
So is the consensus these high yield savings account rates will start to drop this year? I have the 11m Capital One CD that matures mid month and trying to figure out if I want to roll back in, roll part of it in, or just move to my UFB account that I've had 0 issues with on transfers in/out (including 40k out without having to contact them for a down payment on a wheelchair accessible Sierra AT4), or my rate being lowered. Sure I've jumped on the band wagon to have it increased each time but it's never lowered on me and was never an issue to jump on chat and get it increased. Takes all of 2 minutes.
I've had no issues with ufb. If you just want to park your money somewhere with high interest then this bank is fine. You can move money via ach transfer more than ufb's allowed limits by initiating the transfer from another bank with higher transfer limits like capital one which is what I do. The ach limit is based on the initiating bank for both push and pulls.
I've had no issues with ufb. If you just want to park your money somewhere with high interest then this bank is fine. You can move money via ach transfer more than ufb's allowed limits by initiating the transfer from another bank with higher transfer limits like capital one which is what I do. The ach limit is based on the initiating bank for both push and pulls.
I'll add that I've been using them for close to a year, and they DID drop my rate without telling me sometime around maybe September. I called and got the newest rate, which was HIGHER than my previous rate (before they lowered it). In short, watch that account like a hawk. If and when they lower your rate, you will not be notified, and based on several other commenters, this seems like a widespread issue. If the current rate wasn't so good, I'd have jumped ship by now. Just be vigilant.
I have this account, started a few months ago. Only drawback I've found is that if/when they increase the interest rate on their accounts, you have to manually request an increase each time. I started at 5.03%, now requested an increase to 5.25%. I messaged them in the app at 4:53pm, they responded and updated my rate at 5:03pm (exactly 10 min). I'm ok doing a couple minutes worth of work a couple/few times a year to maintain the highest percentage. Works exactly as promised otherwise, great rates.
They decreased my interest rate. I have to call them and adjust the rate
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The dollar limits at funding are:
Maximum to transfer in: $250,000.00
The dollar limits after your account is funded are:
Maximum per day in or out $30,000.00
Maximum per month $60,000.00
You may not make funds transfers in excess of limits described on the External Bank Transfer service.
We reserve the right to change from time to time the dollar amount of funds transfers you are permitted to make using our service.
https://www.ufbdirect.c
So basically, this is a great account for folks willing to call them on their BS. Apparently enough customers don't do that to make it worthwhile for them to play games like this.
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US Treasuries are safer than US currency. The only risk is your money is locked up for a month before you can access it.
Poppy Bank offers 5.35% (5.5% APY), guaranteed rate for 180 days from account opening. I think that's better than tbills.
That's a promotional rate which drops to 0.5% once the promotion ends.
Naturally if you're willing to jump between different bank promotions, you can come out ahead, but you won't find a consistent higher return (not just rate, but tax advantaged return) compared to T bills or I bonds.
Why do 13 weeks? I do a ladder of 4 weeks and also buy every week. Easier to manage and reinvest all interest.
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They decreased my interest rate. I have to call them and adjust the rate