See the review of the best online savings accounts – updated August 18, 2009.
Kiplinger Magazine picked several banks when naming the best savings and checking accounts for 2008. Here is what they’ve chosen.
Best online savings account: FNBO Direct. I am a fan of FNBO Direct, and I’ve started moving more money into this account thanks to its 3.25% interest yield. It’s not currently the highest, but I have had good experiences with the bank since opening the account in September.
Best money market account: Flagstar Bank. A money market account is like a savings account, but will usually have check-writing privileges. Like a savings account, you’re limited to six withdrawals per month, so if you plan on writing lots of checks, use a checking account.
Best checking account: Schwab Bank High-Yield Investor Checking. This account earns 2.2% interest and free checks and debit card access.
Best money market mutual fund: Fidelity Cash Reserves. This account requires a minimum balance of $2,500. Money market mutual funds are slightly more risky that savings, money market, and checking accounts, and are not insured by the FDIC. Kiplinger points out that this fund has signed up for protection under the new law that guarantees money market mutual funds values, but that only applies to deposits before the rule was in place, not new money.
Top Picks in Savings, Checking, Washington Post and Kiplinger, November 16, 2008.
Knight Kiplinger is the editor in chief of Kiplinger’s Personal Finance magazine and Kiplinger.com, and in the November issue, he has published an editorial that gets to the core of what must be done to adapt to today’s economic reality. A link to the online edition of the article was sent to me by a publicity agent, but despite thism I wanted to share it with readers.
Kiplinger, the individual, has nothing to lose by making bold statements about the economy, unlike our presidential candidates who have to worry about alienating voters. The editor in chief does report to the board of directors of the publishing company, so I’m sure he couldn’t fly too far off the handle. Appropriately, the editorial is fitting the rest of the publication.
First, he lists America’s eight toughest economic problems, summarized here:
- Overconsumption and undersaving by individuals and the federal government
- Soaring old-age entitlements
- Addiction to fossil fuels
- Dependence on imported oil
- An overly ambitious foreign policy of promoting democracy by forcible regime change
- Failing public schools and inadequate vocational training
- Uneven access to health care
- A broken immigration system
Kiplinger goes on to provide solutions, both governmental and private, for these issues. Some of these solutions may be controversial. For example. here’s what the article proposes to reduce federal spending.
Voters should insist that Congress begin reducing the federal budget deficit, starting first with spending restraint. Tax hikes could come later–but only if proved to be needed.
My nominees for frozen or gradually reduced federal spending: military hardware; a wide array of subsidies to business, especially energy and agriculture; and health care for the elderly and poor (not less care, but more efficiently delivered).
My candidates for higher federal spending: support for elementary and secondary education, basic scientific research, and infrastructure (bridges, airports, harbors and parks).
The article contains a number of interesting suggestions for improving the economy and the quality of living in the United States. Read the article, A New Economic Agenda.
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