Comments on: Money Market and High-Yield Savings Accounts Updated November 2009

By: John

John — Wed, 04 Nov 2009 22:07:49 +0000

RLK, to calculate the interest you will earn, multiply your savings by the APR and divide by 100. For example…

Shorebank $1000 x 1.95% /100 = $19.50 per year
SFGI $1000 x 2.25% /100 = $22.50 per year

The above example are for $1000 and aren’t accounting for compound interest, but it gives you the idea that if you have $1000, then you will only get about 25 cents more per month by moving.

By: RLK

RLK — Wed, 04 Nov 2009 19:36:58 +0000

I had just opened an account at shorebank (within the last month), but now that they dropped their rate, I’m wondering if I should leave. I don’t have a large amount of savings to move (under a couple thousand) so is it worth it to go from 1.95% to SFGI at 2.25%?
(I’m not sure how to calculate the difference in actual interest paid, so I’m not sure if the difference will be in cents or dollars…) Any advice would be appreciated!
Thanks!

By: Mark

Mark — Wed, 04 Nov 2009 14:37:28 +0000

I’m keeping my savings at ShoreBank. Even at 1.95% they are still among the top rate payers and, over the past two years, consistently have been.

By: slipperyzipper

slipperyzipper — Wed, 04 Nov 2009 03:56:03 +0000

wow talk about short notice. oh well time to dump them anyway.

By: TJ Jackson

TJ Jackson — Wed, 04 Nov 2009 00:40:53 +0000

Shorebank dropping their rate to 1.95 on 11/4

By: Cory

Cory — Sat, 31 Oct 2009 05:19:15 +0000

Arrgh. Recently left ING for AmEx and they just lowered their rate. Time to change again I guess.

By: TJ Jackson

TJ Jackson — Thu, 29 Oct 2009 13:37:02 +0000

JL: read the following, including the comments that follow them

http://bankdeals.blogspot.com/2009/07/competitive-online-savings-account-at.html

http://bankdeals.blogspot.com/2009/09/alliant-credit-union-increases-cd-rates.html

By: JL

JL — Thu, 29 Oct 2009 11:01:14 +0000

TJ, thanks for the link. Has anyone dealt with either SFGI direct or Alliant CU?

By: TJ Jackson

TJ Jackson — Thu, 29 Oct 2009 02:48:17 +0000

JL: Not nearly everyone

http://www.fatwallet.com/forums/finance/783099/

These are national options. You may well have local options as well

By: Brad

Brad — Wed, 28 Oct 2009 23:16:13 +0000

I’m still happy with ClearSky….currently 1.75% APY with a $1 minimum. Open up a Checking account with them too, and you get an ATM card for access to your money (either account)…and they reimburse up to $20 in fees monthly. You can link up to 3 banks with them. Free billpay, too.

By: JL

JL — Wed, 28 Oct 2009 23:00:39 +0000

TJ- Thanks for your response and I agree. The thing is I have been online bank “hopping” for a while now. The last being Shore. I got nervous about the warnings but they continue to be the highest. Just for principle, I will take your advice and move out of Amex….but to where? Everyone is 1.7 or less now.

By: Brad

Brad — Wed, 28 Oct 2009 17:52:18 +0000

@TJ… You are 1000% correct. It isn’t personal with those guys, they just attempt to maximize profits as is THEIR job. That is the same reason I go to the store and buy what is on sale. I figure when I see oranges at $1.49 a lb, I’ll just wait until they fall to $.49 a lb before I buy any. To do otherwise (like leaving money in a now poorly-paying account) just encourages them to think that the market will bear them taking more profits. Not from me.

By: TJ Jackson

TJ Jackson — Wed, 28 Oct 2009 16:37:40 +0000

JL - that’s exactly what they hope you do - leave your money with them simply because you have given up, no matter how low they drop that rate

The best thing you can do to fight this is to vote with your feet. Take your money - every cent of it - elsewhere - to one of several better rate payers. Otherwise, you help create incentive for said bank to CONTINUE to drop rates

Think about it. Let’s say you are the CEO of a big bank, and your profit margin goes up when the rate you pay on savings goes down. You then drop the rate a little, and note over the next 30 days that few if any depositors are pulling their deposits. Your job is to maximize the banks profitability, so why wouldn’t you drop the rate again and see if you still keep virtually all of your deposits?

Anyone who wants banks to keep rates competitive needs to be willing to send the signal “you lower your rate, you lose my money”. Only when enough depositors send this signal will the race to the bottom stop.

By: JL

JL — Wed, 28 Oct 2009 01:46:49 +0000

Transfered my funds from Shore to Amex. By the time my first deposit cleared they dropped their rate just like everyone else has done…….I give up!!

By: slipperyzipper

slipperyzipper — Wed, 28 Oct 2009 00:01:29 +0000

hey shore!
we would have been happy with just a rate bump.

By: slipperyzipper

slipperyzipper — Wed, 28 Oct 2009 00:00:35 +0000

hey shore! how about just a rate bump?

By: Mark

Mark — Tue, 27 Oct 2009 22:47:48 +0000

FYI — ShoreBank has a new web site and still a great rate.

Dear Customer,

We are delighted to announce that we are transforming your ShoreBank online resources to empower your wealth of possibilities. When you visit us online at http://www.sbk.com, shorebankdirect.sbk.com, or log on to ShoreBank personal online banking on Tuesday, October 27, you will see a fresh look with new features and navigation all in one website!

Your new features include ways for you to:

Log on to online banking. You can now log on to online banking from any page on http://www.sbk.com. Just locate the ‘Log on to online banking’ section under our logo, select ‘Personal / ShoreBank Direct’ from the menu and click ‘Go.’ Then enter your User ID and Password, and ‘Log On.’

Discover nearby ATMs and branches. Did you know ShoreBank is part of a national network of ATMs? Try our new mapping feature and find the most convenient banking location for you.

Manage your account. In one click, order checks, request debit cards, electronic statements, enroll for online banking or for online bill payment.*

Learn more about ShoreBank’s unique mission. We are the first bank in the country founded with an express social mission. Now you can grow wealth while seeing, through customer stories, how we are increasing the wealth and well being of communities.

Get Connected. Read our blog for tips and information that will help you redefine what is possible for your finances and for your future.

Find anything else. Quickly find what you want with our easy-to-use search bar.

Please note that you may experience temporary disruption on our websites as we release these new features to you. We apologize for any inconvenience.

Thank you for your continued partnership with ShoreBank in our triple bottom line mission.

Sincerely,

Your ShoreBank Online Team

By: DreaDrea

DreaDrea — Sun, 25 Oct 2009 17:17:58 +0000

Once again everyone, the moderator no longer has us post stuff here on rewards checking accounts, specifically the ones that have the “rules” in order to get those rates. This is because those are simply not equally comparable to regular ol savings accounts. There is a whole other blog for that now.

The point of THIS blog is looking for the best rate for just a regular savings account with pretty much no requirements other than maybe a minimal opening deposit or ongoing balance. See:
http://www.getrichslowly.org/blog/2008/11/17/making-the-most-of-your-checking-account/

By: FrugalMike

FrugalMike — Sun, 25 Oct 2009 14:38:39 +0000

Locally, I’ve been able to find very high rates on rewards checking accounts at credit unions and banks that beat the best savings account rates. An added benefit is that you only have to keep one account instead of a separate checking and savings. I’ve used Communication Federal Credit Union for the past year and the rate has been very stable and easy to attain. Here are a few deals I’ve found locally:

4.25% APY: http://www.comfedcu.org/services/checking.asp (scroll down to Free Performance Checking Account)

4.10% APY:
http://www.rcbbank.com/index.cfm?objectid=30166C10-F8C6-E230-84355E38B48BF108

3.71% APY:
https://www.fnbba.com/InterestChecking.aspx

By: TJ Jackson

TJ Jackson — Sat, 24 Oct 2009 07:09:07 +0000

np folks — whichever decision you make re:Shorebank. I just figured you should have the info to make an informed decision. It is a very good rate compared to the rest of the market, to be sure.

good to see you are still checking in here, Brad - thought we had lost you.

By: slipperyzipper

slipperyzipper — Sat, 24 Oct 2009 01:38:13 +0000

TJ
thanks for the reply!

By: Brad

Brad — Sat, 24 Oct 2009 01:33:36 +0000

@TJ: You can only warn some folks so much. Thanks for the research…. I’m keeping my funds with ClearSky…it’s a bank I want, not a social program on the ropes with a nice FDIC takeover DELAY to be expected when my money is needed.

By: Mark

Mark — Sat, 24 Oct 2009 01:27:54 +0000

@ TJ. The research you cited regarding Shorebank appears sound. However, I choose to “take the risk” and keep my savings at Shorebank. I can only speak for myself, but my reason for doing so is that I choose to support organizations that have a focus on social concerns. Shorebank claims to support community development and environmental issues. Getting a higher return on my savings is the icing on the cake. Since deposits are FDIC insured, the only risk is having to set up an new account at a different bank — something easily done with a few keystrokes. I’m not jumping ship just yet.

By: TJ Jackson

TJ Jackson — Sat, 24 Oct 2009 00:13:33 +0000

Shorebank has a ZERO star rating at Bauer Financial - this is their lowest possible rating
http://www.bauerfinancial.com

Bankrate.com has it at a one start rating, the lowest rating given by Bankrate. In it’s summary, it describes the bank as in “significantly below average financial condition.”. You should read the full report found there.
http://www.bankrate.com/rates/safe-sound/memorandums-memos.aspx?fedid=141734

Bankdeals mentions that they likely raised their rate in late July in order to raise capital that regulators asked them to raise.
http://bankdeals.blogspot.com/2009/07/shorebank-direct-online-savings-account.html

Check out the steady increase in the troubled asset ratio for Shorebank at http://banktracker.investigativereportingworkshop.org/banks/illinois/chicago/shorebank/

In July, the State of Illinois and the FDIC sent a cease and Desist order to Shorebank, ordering them in essence to stop unsafe and unsound banking practices.
http://www.fdic.gov/bank/individual/enforcement/2009-07-07.pdf#

There’s more, but I think the point is made.

By: slipperyzipper

slipperyzipper — Fri, 23 Oct 2009 22:15:06 +0000

TJ and others
where are you getting all this bad news about shore bank, I just don’t see it. Please respond asap have an interest.

By: Matthew

Matthew — Fri, 23 Oct 2009 21:28:33 +0000

TJ Jackson - where are you reading “all the warnings” about Shorebank? I have one account there and I’ve really liked them so far. I found it smooth the whole way through.

I set up another account at Tennessee Commerce Bank when they had 2.3% and they’re still paying it to current account holders even as you continue to put more money into your account. But they’re not taking any new clients for that rate. The website is horrible but the account is paying!

By: TJ Jackson

TJ Jackson — Fri, 23 Oct 2009 14:38:08 +0000

Not sure if you Shorebank account holders have read all the warnings about Shorebank - I will not be surprised to read they’ve gone belly up any day now. Could go either way, but even if they had decent service and interface to go with their very good rate paid, I would not myself be willing to take the risk of having to go through the process of setting up with yet another bank after the FDIC gets around to mailing me the check for my funds, and the loss of many days if interest

By: Online Saver

Online Saver — Thu, 22 Oct 2009 17:28:31 +0000

I have accounts at Ally and Shorebank. Both were very easy to setup, and both are easy to manage on-line. I transferred almost all of my funds into the Shorebank account because it pays more interest than Ally (almost half a point). Not sure why Ally went from 2.25 down to 1.7 in a couple of weeks, almost like a version of bait-and-switch. Shorebank is currently the best at 2.15.

By: JJ M

JJ M — Tue, 20 Oct 2009 20:53:35 +0000

Has anyone set up an acct with either Clear Sky or Ally Bank lately? I have an acct with Shorebank, but it really wasn’t that easy. Altho it’s the firt time I opened an acct online. Just looking to set up another savings account and don’t want to go with Shore Bank at this time. Thanks.

By: TJ Jackson

TJ Jackson — Sun, 18 Oct 2009 20:51:25 +0000

Turns out the fellow who posted the claim about the 3% savings rate runs his own personal finance blog. I left him a message on the blog asking for details, so we’ll see. If I am wrong here, I will be very happy to be wrong