I have a lot of cash sitting in a local bank. However, they have lowered their rate from 5.25% to 4.16% That is a pretty big difference. so, I have been thinking about putting some money in one of those online banks that are still paying 5%.
I did open a small account at ING, but they are not paying great.
Do any of you have any advice about a good online banking service that you like? Remember, the account has to be preety simple for me to open.
Thinking about moving my money!
December 15th, 2007 at 07:13 pm
December 15th, 2007 at 07:22 pm 1197746550
They are now offering CD's at 5.05 APR and 5.25 APY. It is a 9 month CD and a minimum of $500. It is compounded daily and interest is added in quarterly.
You could call and speak with them first and see if you feel better about opening it up. I'm happy with them. They send me a paper statement every month without me asking them for it. Hope this helps.
December 15th, 2007 at 07:44 pm 1197747870
I still love GMAC and they have decent rates. But not 5%. & I am not sure I would move money into GMAC with this whole subprime mess.
E-trade is the one I would not touch with a 10-foot pole.
You could shop around bankrate.com & then read all the fine print on the bamk site, and read reviews at epinions.com. Some of the ones I looked at just had piles of terrible reviews. Some charged fees for online transfers and such. But you wouldn't know until you read the fine print. Some only offer good rates for short period. Etc., etc.
I haven't looked lately because I have 5.5% & 5.7% locked in for another year or so. Those rates are long gone where I have them though. Sorry! But last time I looked I had issue with every online bank but GMAC. & Virtual Bank. (They have some decent CDs on $100k deposits, I think). & I probably have issue with GMAC now. As I worry about their solvency for the long term.
Using Bankrate.com I snatched up a CD at Cal First Bank or something. Their rates are terrible now. So who knows. You'll find something.
December 15th, 2007 at 08:26 pm 1197750410
December 16th, 2007 at 05:10 am 1197781850
December 16th, 2007 at 04:57 pm 1197824247
Using Poundwise's list, pick the top 3 (or 2) highest interest savings account, and put your money there. At the end of every year, move your money and do it all over again.
It's active, it doesn't simplify life, but it does "diversify" a bit while help ensure that you maintain the highest interest rates possible.
Call it "Dogs of the Savings" if you want.
The reason why I bring this up is because you have an interesting situation of both having a lot of cash, and needing that cash liquid for your husband's business.
Also, since you guys are nearing retirement, asset protection is paramount. And honestly, I've looked and looked for the highest rates possible anywhere else, but you know what? For taxable investments, I honestly haven't found anything that protects your assets from the stock market while giving you returns as good as online savings accounts right now! Isn't that crazy? Maybe I'm the crazy one and haven't looked hard enough.
But I do think changing UP TO 3 savings accounts ONLY ANNUALLY is quite doable. What do you think?
December 16th, 2007 at 07:26 pm 1197833207
I was ok with that cause I was getting 5.25% at our local banks, but now I hate leaving the money at 4.16%