Comments on: Start the Decade Off Right: Open a High-Yield Savings Account

By: yesman

yesman — Wed, 06 Jan 2010 12:00:39 +0000

I opened a rewards checking account with my local bank, and it is currently paying 3.51%. I am slowly moving most of my money from my online accounts from ING, HSBC, DollarSavingDirect to this one. Of course, it comes with criteria to qualify for 3.51%, such as 10 debit purchases, 1 ACH debit or direct dep, online-only statements and use online banking. All of which I do anyway, so it was a no-brainer.

By: Flexo

Flexo — Tue, 05 Jan 2010 18:22:02 +0000

Lulu: While it’s mostly a matter if preference I have to disagree with you. While it’s common to refer to the 21st century, which began in 2001, not 2000, it’s much more common to denote decades (the eighties, the nineties, etc.) by the digit in the tens place. I’ve never heard of 1991 being declared the beginning of the “200th decade.”

By: Lulu

Lulu — Tue, 05 Jan 2010 17:28:31 +0000

I have ING as my main online savings and while it might not be the highest high yield any more,it is still a great bank.

I am looking at the rates at the other online banks I use to see if it will make sense to move more money from ING over….but since ING is used for all bills it might not be worth the effort for me.

On a side note….we are still in the decade started in 2000. The new decade does not begin until 2011. Remember when you start at 0 a decade is 10….and the new decade starts in 11.

By: Mike

Mike — Tue, 05 Jan 2010 04:21:02 +0000

I have a savings account that pays me 2%. Not saying who offers it because that will attract the rate chasers.

By: Flexo

Flexo — Tue, 05 Jan 2010 01:10:45 +0000

I don’t think the CPI is supposed to reflect “reality” (the increase in everyday prices we see). It’s a metric that has more meaning for economists than for people who want to know how much it’s going to cost to have health insurance next year.

It still beats Bank of Mattress and savings/MMAs are liquid — no risk and practically immediate access.

By: Flexo

Flexo — Tue, 05 Jan 2010 01:08:53 +0000

You might want to read my review of SFGI Direct. Everything worked well for me, although nothing stood out as special, but after I opened my account, they closed their bank to new customers. I expect they won't be offering high-yield rates for too much longer if they have to restrict new customers from signing up in order to maintain them.

By: Flexo

Flexo — Tue, 05 Jan 2010 01:06:01 +0000

It is hard to get excited about these rates. If you can get an MMA (not an MMF!) with high rates, that works just as well. Just watch out for the typical fees brick-and-mortar banks will stick you with.

By: John DeFlumeri Jr

John DeFlumeri Jr — Tue, 05 Jan 2010 00:29:58 +0000

They are almost a joke, 1% is almost nothing and you get taxed on it too.

John DeFlumeri Jr

By: harm

harm — Mon, 04 Jan 2010 23:18:39 +0000

The grotesque feature of these accounts is that people are losing
quite a bit of money. Flexo, you say that high yield accounts generally
offer rates above the rate of inflation. HAH!! (I’m not criticising you, but
the banks and government) I know the government says inflation is 0%
or less, but what planet are they living on? (and what planet am I living on,
expecting the c.p.i. to reflect reality?)

By: JP

JP — Mon, 04 Jan 2010 20:57:51 +0000

They are kind of new but American Express savings account has a rate of 1.5%. The interface is not as cool as ING which I also have but the they seem pretty good so far.

By: Sharon

Sharon — Mon, 04 Jan 2010 20:52:18 +0000

I have been using SFGI Direct for a while. Their interest rate on savings accounts have been 1.85%. Why is this bank never shown on “The Best of” lists of banks? There is no minimum amount required to open an account, and no monthly fees associated with these accounts.

By: Craig

Craig — Mon, 04 Jan 2010 19:51:34 +0000

I am still not convinced with the online high yield savings accounts. I have my money in a money market account with my bank and the rates are basically identical. All my accounts are with one bank and it keeps things easier for me. Until that changes, I don’t plan on switching.

By: Yvette

Yvette — Mon, 04 Jan 2010 19:33:24 +0000

I closed 2009 on the right foot. I paid off my car note and credit cards. Then I began structuring a CD ladder. Therefore, my 2010 financial goal is to continue and follow through.

By: BobBobBob

BobBobBob — Mon, 04 Jan 2010 18:37:56 +0000

Flexo,

I would LOVE a review (and maybe a table!) comparing features of different online banks. I currently have and love ING’s online tools (no-minimum CDs, Online checking, awesome bill pay, easily open sub accounts) but maybe I’m missing something even cooler!