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Interest Rate For Savings Account


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i was just looking at my savings account interest rate and it has gone down a lot since i opened it up. i use ally for my savings and i think it started at 2.25% APY and is now down to 1.29%. i know with the market the way it is that it was going to drop but i was looking around to see if there was anywhere i could transfer my money to that has a higher APY. anyone know of a good savings account that has a good APY?

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I think Ally actually has one of the better rates right now. Rates have been dropping everywhere. I opened an account with ING Direct that was at 3%, and it has since dropped to 1%. You also need to be careful if you find a really good rate. Chances are it's a teaser rate, for like the first 6 months then drops, or some of the rates are only good up to a certain amount of money then drops.

 

Something you might look into if you can get one is an interest bearing checking account with a credit union. I've seen several credit unions lately where you can get around 5%. The main rules I've seen with this are you have to use direct deposit and use your check card for at least 10 transactions a month. Something along those lines.

 

Also, if you don't have an immediate need for the money, put it into a longer term CD with a higher rate, or as was mentioned, maybe a mutual fund.

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I think Ally actually has one of the better rates right now. Rates have been dropping everywhere. I opened an account with ING Direct that was at 3%, and it has since dropped to 1%. You also need to be careful if you find a really good rate. Chances are it's a teaser rate, for like the first 6 months then drops, or some of the rates are only good up to a certain amount of money then drops.

 

Something you might look into if you can get one is an interest bearing checking account with a credit union. I've seen several credit unions lately where you can get around 5%. The main rules I've seen with this are you have to use direct deposit and use your check card for at least 10 transactions a month. Something along those lines.

 

Also, if you don't have an immediate need for the money, put it into a longer term CD with a higher rate, or as was mentioned, maybe a mutual fund.

 

my checking account is actually in a credit union already and i have direct deposit so i am goin to have to make some calls to see if they have an interest bearing account. the money that is in there now will be used towards a down payment so i need it pretty liquid for now. once i get a house i will start checking into CD's or mutual funds.

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I think Ally actually has one of the better rates right now. Rates have been dropping everywhere. I opened an account with ING Direct that was at 3%, and it has since dropped to 1%. You also need to be careful if you find a really good rate. Chances are it's a teaser rate, for like the first 6 months then drops, or some of the rates are only good up to a certain amount of money then drops.

 

Something you might look into if you can get one is an interest bearing checking account with a credit union. I've seen several credit unions lately where you can get around 5%. The main rules I've seen with this are you have to use direct deposit and use your check card for at least 10 transactions a month. Something along those lines.

 

Also, if you don't have an immediate need for the money, put it into a longer term CD with a higher rate, or as was mentioned, maybe a mutual fund.

 

I agree with most of what you say, but I would NOT put money into a intermediate to longer term CD at this point. Interest rates WILL rise in the future and this is not good for intermediate to long term fixed income prices. Stay with a bond fund with a short duration of 0-2 years for your intermediate/longer term money until after rates rise to minimize interest rate exposure eroding your principal.

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This is the Lounge right?

For non car care discussions and your general "kicking your feet up."

:iagree:

I also agree interest rates will be goign up in the not to distant future. I would not lock my money into a fixed interest rate long term right now.

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None of the local banks around here are paying more than 1/2 of 1% on savings and you couldn't find a CD paying more than 1.75 no matter how long. The economy sucks!

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None of the local banks around here are paying more than 1/2 of 1% on savings and you couldn't find a CD paying more than 1.75 no matter how long. The economy sucks!

 

I agree with you as well. I was just looking at other options to make a little more money. Ally is an online bank run by GMAC if I am not mistaken. This keeps their costs down and allows them to offer higher interest rates.

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You might want to check to see what like a 6 month CD rate is at the credit union and see what their savings account rate is. (Especially if you do not need your money for the next six months). Another option is to divide your current savings in half, keep half of it in a savings account and the other half in a 6 or 12 month CD rate. I would not suggest you putting your money into your checking account (easy for you to spend it).

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You might want to check to see what like a 6 month CD rate is at the credit union and see what their savings account rate is. (Especially if you do not need your money for the next six months). Another option is to divide your current savings in half, keep half of it in a savings account and the other half in a 6 or 12 month CD rate. I would not suggest you putting your money into your checking account (easy for you to spend it).

 

i could need the money as soon as next week if a house becomes available that we like so i need to be able to access it pretty quick. i only keep enough in my checking to cover my car payment, insurance, bills, and credit card. the rest goes into my Ally savings account. i have a budget for my credit card (most of it is for Adam's lol) so i put a decent amount of my paycheck into the savings.

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