Comments on: Increasing My Savings, An Experiment, and Extra Income http://www.consumerismcommentary.com/increasing-my-savings-an-experiment-and-extra-income/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 13 Feb 2012 01:22:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Flexo http://www.consumerismcommentary.com/increasing-my-savings-an-experiment-and-extra-income/comment-page-1/#comment-9954 Flexo Wed, 31 May 2006 12:09:29 +0000 http://www.consumerismcommentary.com/2006/05/30/increasing-my-savings-an-experiment-and-extra-income/#comment-9954 That's a good observation. I have savings at ING Direct and Emigrant Direct, and when I opened each account, it was when that particular bank had the highest rate. It's not a lot of cash, so the quarter point interest I might gain by jumping around whenever one bank leapfrogs anouther is not worth it to me. If a different bank is a clear winner after another six months, I might consider changing, or at least depositing new funds there. I don't want to keep too much money in these types of accounts because they barely keep up with inflation after taxes. That’s a good observation. I have savings at ING Direct and Emigrant Direct, and when I opened each account, it was when that particular bank had the highest rate. It’s not a lot of cash, so the quarter point interest I might gain by jumping around whenever one bank leapfrogs anouther is not worth it to me.

If a different bank is a clear winner after another six months, I might consider changing, or at least depositing new funds there. I don’t want to keep too much money in these types of accounts because they barely keep up with inflation after taxes.

]]> By: JR http://www.consumerismcommentary.com/increasing-my-savings-an-experiment-and-extra-income/comment-page-1/#comment-9704 JR Wed, 31 May 2006 06:07:42 +0000 http://www.consumerismcommentary.com/2006/05/30/increasing-my-savings-an-experiment-and-extra-income/#comment-9704 I'm a little surprised that you maintain a "best banking rates" page, yet choose to use the bank with the worst rate. ING has the easiest-to-use website (HSBC and Virtual Bank are particularly painful), but their rates are consistently about a half point less than the others. That half point of lost interest won't make a huge difference for most people, but not choosing the higher rate seems like throwing away easy free money. I’m a little surprised that you maintain a “best banking rates” page, yet choose to use the bank with the worst rate. ING has the easiest-to-use website (HSBC and Virtual Bank are particularly painful), but their rates are consistently about a half point less than the others.

That half point of lost interest won’t make a huge difference for most people, but not choosing the higher rate seems like throwing away easy free money.

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