Savings account interest

Saving & investing, frugality & simple living. They're all part of the wealth equation.
Here's the place to discuss getting (and keeping!) your money.

Moderator: lvergon

rimfirerifleman
Posts: 28
Joined: Tue Jul 03, 2012 2:06 pm
Contact:

Savings account interest

Postby rimfirerifleman » Thu Aug 09, 2012 2:20 pm

My savings account I've had since I learned how to walk pays .05% in interest. The account has about 10,000 in it and constitutes my emergency fund. I'm 19 on scholarships to college and won't need this money for now and would like to get a better interest rate. I also have a 20,000 cd with them for two more years at 4.28%.

So, how would you get a better rate?

Switch banks? -it is very convenient with locations in my hometown as well as away at school.

Go into the bank and see what they'd do?- Not sure if I'd have much luck, but hoping my cd would help give me leverage.

What would you do?

tdelamater
Posts: 62
Joined: Thu Dec 30, 2010 4:59 pm
Location: San Diego, CA
Contact:

Re: Savings account interest

Postby tdelamater » Thu Aug 09, 2012 2:54 pm

Unfortunately, right now is a terrible time for interest rates.

I can't say anything for certain about your bank, but if it's similar to chase you might check if you're eligible for the next tier of savings account. They might make you open up a checking account and "link" the balance of your CDs in order to qualify for no monthly service fee. At chase this would yield you a whopping 0.15% interest rate! :lol:

Question: Do you really need a brick and mortar branch? If not check out http://www.getrichslowly.org/blog/2007/03/21/which-online-high-yield-savings-account-is-best/ to get your whopping 0.65-0.9% return :emo:

DoingHomework
Moderator
Posts: 5605
Joined: Wed Sep 23, 2009 9:01 am
Contact:

Re: Savings account interest

Postby DoingHomework » Thu Aug 09, 2012 3:22 pm

rimfirerifleman wrote:My savings account I've had since I learned how to walk pays .05% in interest. The account has about 10,000 in it and constitutes my emergency fund. I'm 19 on scholarships to college and won't need this money for now and would like to get a better interest rate. I also have a 20,000 cd with them for two more years at 4.28%.

So, how would you get a better rate?

Switch banks? -it is very convenient with locations in my hometown as well as away at school.

Go into the bank and see what they'd do?- Not sure if I'd have much luck, but hoping my cd would help give me leverage.

What would you do?


You are already getting an unbelievably good interest rate.

rimfirerifleman
Posts: 28
Joined: Tue Jul 03, 2012 2:06 pm
Contact:

Re: Savings account interest

Postby rimfirerifleman » Thu Aug 09, 2012 5:58 pm

I know my cd rate is pretty good, but .05% on savings? ugh maybe I should give up on trying to make an extra forty-five bucks in interest this year. (10,000*.005)-(10,000*.0005)=45 Yet again 45 is better than the five I'll get with .05%, who know's I'll stop by the bank tomorrow

njitalian85
Posts: 7
Joined: Thu Aug 09, 2012 5:34 am
Contact:

Re: Savings account interest

Postby njitalian85 » Sun Aug 12, 2012 12:01 pm

The best savings account interest rates are the online savings accounts. If you really want to earn more savings, I'd recommend an ING Direct (0.8% APY) account. ALLY Bank and American Express also offer higher interest rates as well. If you are willing to have an online only account, you'll do much better than 0.05%. It's not like 0.8% APY is all that stellar either though. Interest rates really do suck now. Consider yourself lucky that you at least are making something on your CDs.

Bichon Frise
Posts: 1100
Joined: Fri May 04, 2012 2:23 pm
Contact:

Re: Savings account interest

Postby Bichon Frise » Tue Aug 14, 2012 9:41 am

Why not take out a 5 yr CD at somewhere like Ally? The penalty is small and the interest rate is higher.

Also, if you can be without the money for at least 1 year, I-bonds are a good option as well. 2.2% for the next 6 months I believe. Buy at the end of the month, btw.
Bichon Frise

"If you only have 1 year to live, move to Penn...as it will seem like an eternity."

avocado wrote:Good to see you back, I was starting to miss your incisive commentary!

brad
Posts: 1359
Joined: Thu Apr 05, 2007 3:05 pm
Contact:

Re: Savings account interest

Postby brad » Tue Aug 14, 2012 11:13 am

As an aside it's interesting (no pun intended) to note the differences in interest rates between ING in the US and ING Canada. Here in Canada ING pays 1.35% for a standard savings account, but the best rate it offers for a 5-year CD is 2.25%.

In general, when complaining about today's low interest rates it's important to also consider today's low inflation rate: interest rates don't mean much when considered in isolation. Back in the early 1980s you could get a regular savings account that paid 5.7%, but inflation was in the double digits. You're actually coming out better at today's low rates.

geoff_tewierik
Posts: 221
Joined: Mon Aug 08, 2011 9:13 pm
Location: Brisbane, Australia
Contact:

Re: Savings account interest

Postby geoff_tewierik » Wed Aug 15, 2012 5:51 pm

We won't talk about the current rate ING Australia has on offer: 5.35% for new accounts, drops to 3.75% after 4 months, but if you deposit $200 a month, they give an extra 0.75%.

Bichon Frise
Posts: 1100
Joined: Fri May 04, 2012 2:23 pm
Contact:

Re: Savings account interest

Postby Bichon Frise » Wed Aug 15, 2012 8:22 pm

geoff_tewierik wrote:We won't talk about the current rate ING Australia has on offer: 5.35% for new accounts, drops to 3.75% after 4 months, but if you deposit $200 a month, they give an extra 0.75%.


Greece has some pretty good rates as well....
Bichon Frise

"If you only have 1 year to live, move to Penn...as it will seem like an eternity."

avocado wrote:Good to see you back, I was starting to miss your incisive commentary!

kaelynnjones
Posts: 1
Joined: Wed Aug 08, 2012 3:52 am
Contact:

Re: Savings account interest

Postby kaelynnjones » Wed Aug 15, 2012 9:48 pm

The information shared here is very useful and informative.

DoingHomework
Moderator
Posts: 5605
Joined: Wed Sep 23, 2009 9:01 am
Contact:

Re: Savings account interest

Postby DoingHomework » Wed Aug 15, 2012 10:43 pm

Bichon Frise wrote:
geoff_tewierik wrote:We won't talk about the current rate ING Australia has on offer: 5.35% for new accounts, drops to 3.75% after 4 months, but if you deposit $200 a month, they give an extra 0.75%.


Greece has some pretty good rates as well....


But that's hardly a fair comparison. Greece is in trouble while Australia has done phenomenally well over the last few years, partly because gold has done well and their currency benefits from gold.

I am about as far from a gold bug as you can get. But I'd take 5% in an Australian account over 0.5% in a US account or 25% in a Greek account any day. Now, make teh Greek deposit ECB insured and I'll have to think harder.

brad
Posts: 1359
Joined: Thu Apr 05, 2007 3:05 pm
Contact:

Re: Savings account interest

Postby brad » Thu Aug 16, 2012 3:50 am

geoff_tewierik wrote:We won't talk about the current rate ING Australia has on offer: 5.35% for new accounts, drops to 3.75% after 4 months, but if you deposit $200 a month, they give an extra 0.75%.


Yes, but the inflation rate in Australia right now is 1.2%. So knock that off and you get an actual rate of 4.15% (still great) for the introductory rate and 2.5% thereafter....also still great compared with what we can get in North America. But inflation in the United States right now is at 0.1%.

dpixel
Posts: 15
Joined: Tue Jun 05, 2012 9:42 am
Contact:

Re: Savings account interest

Postby dpixel » Thu Aug 16, 2012 6:05 am

How about looking at your 20k cd as your emergency fund. The penalty for early withdrawal is small. Usually a small percent of the interest earned.
And investing in a diversified way the 10k. Such as stock ETF's since you're so young.

Bichon Frise
Posts: 1100
Joined: Fri May 04, 2012 2:23 pm
Contact:

Re: Savings account interest

Postby Bichon Frise » Thu Aug 16, 2012 8:09 am

DoingHomework wrote:
Bichon Frise wrote:
geoff_tewierik wrote:We won't talk about the current rate ING Australia has on offer: 5.35% for new accounts, drops to 3.75% after 4 months, but if you deposit $200 a month, they give an extra 0.75%.


Greece has some pretty good rates as well....


But that's hardly a fair comparison. Greece is in trouble while Australia has done phenomenally well over the last few years, partly because gold has done well and their currency benefits from gold.

I am about as far from a gold bug as you can get. But I'd take 5% in an Australian account over 0.5% in a US account or 25% in a Greek account any day. Now, make teh Greek deposit ECB insured and I'll have to think harder.


risks for an american investing in either country are the same. probability of those risks...well, that is a different story.
Bichon Frise

"If you only have 1 year to live, move to Penn...as it will seem like an eternity."

avocado wrote:Good to see you back, I was starting to miss your incisive commentary!


Return to “Personal Finance”

Who is online

Users browsing this forum: Baidu [Spider], Google [Bot]