Financial Information
What determines how savings rates vary account?
I’ll open a savings account, but all seem to say that can change the specified rates after opening the account. How will I know what counts is my best interest if they are all changed at any time for any reason?
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#2 written by Common Sense 1 year ago
Look for banks that have records… over the years, of being consitantly in the top 5% of rates. Examples of FDIC insured banks (on-line) that have done this are;
http://www.GMACBank.com
http://www.HSBCDirect.om
http://www.INGDirect.com -
#4 written by Mark 1 year ago
Rtes are variable, not fixed. They fluctuate based on the market and what the Fed rate is at the time. When the Fed cuts rates, generally that can lead to banks cutting rates.
CD’s are fixed savings accounts for fixed periods of time. So if you prefer a fixed rate you can go there. The savings rates may not just go down, they could also go up…which is what makes CD’s less attractive at certain times.
There are sites like bankrate.com that list uptoday rates for all savings and cd’s in the market. It’s not convenient to keep switching between companies and opening new accounts, however, just to get a slightly higher rate. So best to find a company that is consistently in the top tier of highest rates. For example, for savings, Emmigrantdirect.com is always one of the highest. ING used to be, but thier focus is now on spending alot on advertising and balancing that with lower rates.
If you are not ready for online savings accounts such as these, do your research of local banks. Many historically offer the worst rates. So CD’s may be the best option then. Do your research on everyone’s CD rates. Also, check with local credit unions. They can offer higher rates usually, since they are not profi thungry as most regional banks.
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Do not open a savings account.
You need to buy Municipal Bonds.