In lieu of my needing to tap my emergency fund to pay for car repairs, I called my bank to make sure that money would instantly be available in my checking account as soon as I transfered it to checking via online banking. They said it would be. Then, it popped into my head to check the interest rate on their savings accounts.
SHE SAID THEIR SAVINGS ACCOUNTS GET 0.5% INTEREST!
What!
0.5% interest??????
Is this normal? I was under the impression that interest rates should at least be 2%.
0.5% Interest on My Savings Account??? HELP!
December 26th, 2007 at 05:24 pm
December 26th, 2007 at 05:34 pm 1198690449
December 26th, 2007 at 05:34 pm 1198690472
December 26th, 2007 at 05:36 pm 1198690575
The minimum balance for the MMA at my credit union is $2,500, and my interest rate is 3.08%. They also have "tiered" interest rates -- for example, if I keep a $10,000 balance in that account, my interest rate goes up to 3.58%; if I keep $25,000 in that account, the interest rate is 3.93%, and so on.
Good luck!
December 26th, 2007 at 05:37 pm 1198690660
I don't even think that my "brick & mortar" bank pays .50% . . . it's probably now closer to .25% @@
That is why I do all my saving (accounts) online!
ING pays 4% (or so)
HSBC pays 4.25%
Emigrant pays 4.25%
Not the largest amounts, but still better than .50% or less. :-/
December 26th, 2007 at 05:49 pm 1198691365
December 26th, 2007 at 06:34 pm 1198694087
December 26th, 2007 at 07:21 pm 1198696915
December 26th, 2007 at 07:30 pm 1198697451
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December 27th, 2007 at 03:26 pm 1198769215
December 27th, 2007 at 04:17 pm 1198772247
Online money markets offer great rates. & CDs and such. & you can transfer the money to/from checking easily enough when needed.
We make twice the interest now with 1/2 as much money, it seems.
December 29th, 2007 at 06:47 am 1198910873
I have an ING online account as my main savings/emergency fund. I also use Treasury Direct at treasurydirect.gov making an online T-bill ladder. T-bills of various maturities are currently running around 3% - they used to be 4.5-5% in the spring and summer.
I'm sure someone will give you an ING invitation to start you off - they make it a sweet deal.