Comments on: What Makes A Good Account For Short Term Savings?

By: Kosmo @ The Soap Boxers

Kosmo @ The Soap Boxers — Wed, 01 Jun 2011 00:59:07 +0000

We get 4.25% on a rewards checking account (on balances up to 25K). Requires one direct deposit per month (minimum $100 or $200, I think) and 12 debit-as-credit transactions that average $5 each. We make sure we hit the 12 transactions threshold (otherwise the rate drops below 1%), but essentially treat it as a savings account.

By: Silicon Valley Blogger

Silicon Valley Blogger — Thu, 26 May 2011 23:20:06 +0000

Thanks Adam. It’s easy enough to use a savings account for short term savings goals, for emergencies and for a parking spot for money to be used for investments at a future date. You’re right that when rates are so low, one should really be focusing on the costs since these fees are now the big differentiator across banks and FIs.

By: Adam

Adam — Thu, 26 May 2011 20:21:59 +0000

Two things are currently consisted about banks:
1. They’re heavily regulated.
2. They pay very, very little yield.
If the purpose of a savings account save, and the banks are paying very little interest, then it’s best to find the least expensive (preferably free if possible) option. Thus, park you money in a safe bank account while looking for a better opportunity to invest.

By: No Debt MBA

No Debt MBA — Thu, 26 May 2011 17:57:48 +0000

I’ve been very happy with my experience at HSBC. Though their rates are no longer the best, I’ve never had a problem with my account.

By: SB (One cent at a time)

SB (One cent at a time) — Thu, 26 May 2011 02:22:58 +0000

If a checking account can pay me 1.05%, I would prefer to open a checking account instead of a savings account. A checking account has several benefits, which we do not get from a savings account. I explain more in my blog post here. Recently, I did get a flier from Bankatlantic about a high interest checking account. This is one option every one should look at these days.

By: Silicon Valley Blogger

Silicon Valley Blogger — Thu, 16 Sep 2010 16:10:12 +0000

@Das Guy,
Shifting interest rates on your account may be both good and bad. If rates are rising, heck we’d all want to be on board that train right away! Sure, rates are set by the government. There’s the Prime Rate that varies with the Feds Fund Rate. See here for more details on how the rates are pegged.

All I know is that Ally Bank’s rates shift the most, compared to all other savings accounts I’ve been covering/following.

By: Das Guy

Das Guy — Thu, 16 Sep 2010 15:59:07 +0000

John Rowe mentions the interest rates change daily and calls it fishy. If the changes are arbitrary, and especially if they diverge from what is offered to new customers I’d agree. But if the rates are pegged to some index that could be a good thing. Is there any information on how the rates are determined?

By: John Rowe

John Rowe — Wed, 01 Sep 2010 16:06:09 +0000

From my experience, I’ll take any other savings account other than what’s at Ally Bank’s. They lure you in as a customer by offering high interest rates, but after that, they change the rates on a daily basis. Seems quite fishy to me!

By: Tim on savings account

Tim on savings account — Sun, 11 Oct 2009 23:11:59 +0000

It seems that Ally bank is offering quite a good deal. While security is very important, ease of access and low charges is something that people took for as well.

By: Annuity Quotes Guru

Annuity Quotes Guru — Mon, 08 Jun 2009 20:41:06 +0000

I think people are mostly scared to change financial institutions – especially now that they can “insure” up to $250,000 per person at their local bank.