Have you looked at the interest rate on your savings/checking account? I just did, it’s .30%. That’s it, less than one third of one percent, pretty shabby. Not too long ago you count get 5%, and perhaps one day in the future circumstance will shift in favor of the saver. Sadly, now banks are little more than safe places to keep your cash, a really secure mattress. Of course it’s still a much better and safer alternative to stuffing money under your actual mattress.
While CD’s and money markets are no longer attractive investment vehicles, I am still a big believer in having a rainy day fund. You never know when disaster will strike and its better to be prepared. Since banks are the best place to keep that money we might as well make the most of the situation. I have found three bank that offer the “best” interest rate in todays environment.
- Ally Bank – Is presently offering .95% on saving accounts. No minimum deposit, no monthly maintenance fees. The only downside is that it is a variable rate, it can change. Ally is a well know bank with a good reputation.
- American Express Bank – Is offering .90%, no fees, no minimum despot. The rate is also variable and hence subject to change. American Express also has an excellent reputation. If you already have an American Express card the option to log on and monitor both accounts might be appealing.
- FNBO Direct – Is offering .85% on their saving account. No minimums are fees here either. Variable rate, subject to change. Reviews of this bank are very strong, I read one that claimed the online bill pay was excellent. It’s certainly worth a look.
All of these banks are FDIC insured so your money will be protected up to the government set maximums.
After reviewing my own savings account I found that I made about 12 dollars last year in interest. Would making 40 bucks in interest change my life? Of course not, but its still an extra money in my pocket. It’s good for a few gallon of gas in my car or a trip to the movies for my future bride and I. We’ll take it.