Savings rates

[happygirl]

Hi everyone.

I was at my bank yesterday and they told me my rate had dropped from 2.0 to 1.5. I was not happy and I've been calling around this morning checking other local rates. It appears 1.5 might not be a bad deal right now. I looked at the long savings rate thread here and that also gave me the impression that 1.5 isn't too bad for now, especially since I prefer to bank with a local bank. I just wanted to make sure I wasn't mistaken, so can someone just confirm my thinking or give me an idea of what I should be looking for if I'm mistaken? Oh, it is compounded daily, which is better thank monthly, right?

Thanks everyone!

[Ima saver]

The top rate that I could get for a jumbo CD was 1.98% right now. Compounding daily is better than monthly, you are right! We do have one bank in town offering 2.25% but that is for a 25 month c.d.

[creditcardfree]

I'm only getting 1.25% with FNBO Direct. Yes, the rate you were quoted is likely the going rate. All of us savers, wish they would go up!!

[maat55]

I moved my savings to an interest checking. I get 4.1 on balances up to 25k. I have to use my checkcard 12 times, so we put 10 dollars gas in at a time twice a week or less. I deposit enough to cover the costs(usually around 120.00)not to upset my car and EF.

[happygirl]

I moved my savings to an interest checking. I get 4.1 on balances up to 25k. I have to use my checkcard 12 times, so we put 10 dollars gas in at a time twice a week or less. I deposit enough to cover the costs(usually around 120.00)not to upset my car and EF.

Now this is an interesting idea. The bank I currently have my savings in is offering a money market checking account with 2.25, but they want you to make at least 6 purchases a month. So maybe I could move my savings into this new account, get an ATM card and just put an extra 60ish dollars in a month which I would use on gas and/or other items. This might work for me.

We do all our day to day banking with another bank, in which my husband's check is automatically deposited and I don't want to change that, but this might be a good way to meet the requirements to receive a higher interest rate. Thanks for the idea!

[creditcardfree]

High yield checking accounts are definitely worth looking into, but make sure to know all the rules. Often a direct deposit is required, as well as, a certain number of debit transactions and opting in for email statements.

[Helterskelter]

Smartypig.com

Get into Smartypig! It's an online only savings account that has 2% APY. It will adjust to 2.15% at the end of may if I remember correctly.


The limit for the 2+% is $50,000, anything above that will only receive .5% APY.

Thanks

[jIM_Ohio]

Are you looking for a higher return (with more risk) or a guaranteed return?

When rates are low it encourages investment in riskier ventures, or provides low returns on guaranteed invesments

[happygirl]

Are you looking for a higher return (with more risk) or a guaranteed return?

When rates are low it encourages investment in riskier ventures, or provides low returns on guaranteed invesments

I definitely don't want risk on this money. It's my emergency fund money.

[TaylorGuitar]

Are there any downsides to shifting money from one bank to another as rates flutuate? I've got nearly $10K in a MMA with one bank at 1.35 as my EF. But playing phone tag with a rep at my bank I do day-to-day transactions, they want my MMA business. Are pitfalls to changing banks every so-many-number of months/years? Or settingg up a new MMA acc't every so often?

[cptacek]

Are there any downsides to shifting money from one bank to another as rates flutuate? I've got nearly $10K in a MMA with one bank at 1.35 as my EF. But playing phone tag with a rep at my bank I do day-to-day transactions, they want my MMA business. Are pitfalls to changing banks every so-many-number of months/years? Or settingg up a new MMA acc't every so often?

Nothing other than paperwork and hassle. If you have anything coming out of that account automatically, you have to switch that. You will get 2 1099s instead of 1 at tax time. If you can just write one check from the current MMA to the new MMA, and the money immediately starts earning interest the day you deposit it, I don't see any downside.

If there is any delay between when the money comes out of one and gets put in another, you need to calculate how much that will cost you and if that is worth worrying about. (Usually a problem with online transfer transactions...for instance between ING and another bank. Those transactions take like 3 days and the money is lost in the ether for those days, so you lose 3 days interest).

[rennigade]

there are several banks that are paying 4%+ as long as you meet the minimum requirements, such as using checkcard 12 times a month, 1 direct deposit, or 1 online billpay.

if anyone is thinking about using bank of the sierra I would refrain. their website looks pretty when you visit the main site but after you actually log in my god, it appears as if a 2nd grader threw the site together. the interface is horrible, not friendly whatsoever. also, its difficult to actually withdraw money once its in the account. if they'd tackle that particular issue, i would have stayed with them since they do pay 4% up to 25k. emigrantdirect is only getting a little over 1% but its easy/friendly to use.