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JohnQK t1_jefs219 wrote

>Ive seen some online banks (that are fdic insurred) offer 5% on savings accounts.

Avoid these like the plague. They are extremely dangerous. Note: because a major online bank purchases a lot of sponsored content, you're going to get a lot of recommendations for it here. Disregard, they are no ally of yours.

Finding a real bank or credit union in your area that offers similar rates is the best bet.

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LastTrainH0me t1_jefz1s4 wrote

I guess you're saying you aren't a fan of the usual recommendations of Ally HYSA and no-penalty CDs. Are you going to say why these are "extremely dangerous"?

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Ghost_of_JFK t1_jefux1r wrote

This sounds like misinformation. You should always conduct due diligence before joining any bank, but there are several online banks that are better than larger physical banks.

Ally savings has a 3.75% interest rate right now. They also have a no penalty CD with 4.35% I think. It was 4.75% a few days ago.

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chedncheese t1_jefxvoo wrote

I don't disagree that they may be able to find a HYSA with an organization with physical locations but that doesn't mean online banks are dangerous, nor that everyone who recommends them is a shill.

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