Comments on: Alternatives to High-Yield Savings Accounts

By: SB (One cent at a time)

SB (One cent at a time) — Tue, 31 May 2011 04:35:36 +0000

I recently moved most of my money from no interest checking to capital one interest checking account, and I am at least able to keep my money at par with inflation. Yes, I do work and I do not prefer keeping money in checking account. Still for all practical purpose we all need to keep sufficient money in checking account always, a few extra bucks there really helps.

By: thriftygal

thriftygal — Fri, 08 Jan 2010 07:13:24 +0000

Thanks for the info Andy!

By: Eric

Eric — Fri, 08 Jan 2010 00:31:09 +0000

yeah even I have jumped on the high yield checking accounts. it’s not as bad as it seems and i can get $40-50 bucks a month. not bad.

By: Andy Hough

Andy Hough — Thu, 07 Jan 2010 15:31:58 +0000

thriftygal – my account is only available to residents of the KC metro area. You can find a reward checking account in your area at highyieldcheckingdeals.com or checkingfinder.com. These are usually small, community banks that offer the reward checking accounts.

By: savingeverything

savingeverything — Thu, 07 Jan 2010 06:39:14 +0000

Flexo, not sure where you live; but there are several local or regional banks in your state that have good interest rates (at least better than 0.05% or 0.10% at the common big monster banks). YOu may want to consider looking into that; and of course, as mentioned above, some of those reward checking accounts… even ones that are in you state! Some nowadays still pay interest for upto $25k at average 4.0%apy, as long as you complete on average 10 signature-based debit card transactions, 1 direct deposit or ach out, must accept e-statements, and some require must login each month. Not bad, and if the bank has several branches in your state or nearby, then that’s a bonus.

By: thriftygal

thriftygal — Wed, 06 Jan 2010 21:22:01 +0000

Sorry the above reply was for Andy Hough and not for Geoff.

By: thriftygal

thriftygal — Wed, 06 Jan 2010 21:20:35 +0000

4% interest on a checking account? Sounds too good to be true! Where do you bank?

By: Andy Hough

Andy Hough — Wed, 06 Jan 2010 21:05:05 +0000

Reward checking accounts are a good option. Mine pays 4% and the requirements are easy to meet and all of your money is easily accessible.

By: Geoff

Geoff — Wed, 06 Jan 2010 18:49:24 +0000

I have been looking at move some money into the high yeild muni fund at Vangaurd. It is paying around 4% and is federal tax free.

By: Anthony Manganiello

Anthony Manganiello — Wed, 06 Jan 2010 17:25:13 +0000

What, if anything, are you doing about eliminating debt? I wholeheartedly agree that moving money away from the “big banks” is a step in the right direction (I also bank locally at small, regional banks). However, that alone won’t resolve the issue. To take a second step, you have to help the normal, blue-collar guy, understand how personal cash flow works.

While people like us are more savvy financially, the Potters’ of the world are building their empires on the backs of the everyday, average, working Joe (or Josephine). They need to understand that they’re generating a fairly significant amount of wealth as they forge ahead throughout their working life. Yet, they don’t accumulate any of the wealth they generate because they’ve already committed it to banks (national or regional).

It’s my personal, professional, position that we need to help as many people as possible understand that the key to succeeding financially, is directing their personal cash flow towards a destination where it winds up being deposited in an account in their name. Currently, the vast majority of folks are directing towards the Potters’ of the world, and they don’t even know it.

Thoughts?

By: Investor Junkie

Investor Junkie — Wed, 06 Jan 2010 13:42:31 +0000

I-Bonds are not a bad idea as they are tied to inflation.

Personally, I have the 4% rule to investing in any asset. Anything below 4% return becomes risky in other ways:

http://investorjunkie.com/the-4-percent-rule-to-investing

The thing to remember with ANY investment it contains risk, even in what people think as ‘safe’ investments.

By: MoneyProgress

MoneyProgress — Tue, 05 Jan 2010 22:30:02 +0000

How about Series I Savings Bonds? I am currently in the process of “transferring” my emergency fund from online savings accounts to I Bonds. The current rate is about equivalent to online accounts right now. Here is a good post about the current rates.
http://www.mymoneyblog.com/archives/2009/11/savings-i-bonds-november-2009-fixed-rate-03.html

Because you have to hold them a year before you can sell them, I am buying a small amount each month. Eventually I’ll have enough in there that I could sell to be my emergency fund. If they rates get bad, I can sell them, otherwise they keep increasing in value and are not taxed until you sell ( and no state tax.)

By: Nicole @ RainyDaySaver

Nicole @ RainyDaySaver — Tue, 05 Jan 2010 19:01:52 +0000

I made the move back to a community bank last year, and the improved interest rate alone made it worthwhile. Sure, there are only a few branches of the bank, but they reimburse fees incurred at other ATMs, if we travel out of the area and need to make a withdrawal.

By: Craig

Craig — Tue, 05 Jan 2010 17:04:06 +0000

I have my savings in a money market account and the rates are the same, and no monthly fees at all. I barely touch it and have a separate general investment savings mutual fund so I look at this as more short term liquidity savings.