While it is tempting in the current environment to stash the cash in your mattress, and it will gain almost as much interest there as in your checking account, it is not going to help you get to that retirement milestone.With my last bank statement, I saw that I was getting a whopping 0.1% rate on my checking account and an astronomical 0.6% rate on my savings account.
I had planning on doing some banking on Monday, and thought to investigate Certificate of Deposit (CD) rates and open one for our Rte66/cruise/car/legal funds we have established. The National Average for Money Market funds is 0.12%, for Deposit Accounts is 0.37%, for CD's is 1.14% for 12 months, and 2.38% for 60 months. I believe that interest rates will rise over the next year or two, so certainly do not want to lock in a 60 month rate.
I have an ING - Orange savings account associated with my stock investment account, and they are giving a 1.4% rate, so I did my transfers on-line today. If you do not already have an account that you can secure a greater than 1% rate on, below are a couple of places you can increase your savings return rate:
Money Market, USAA, 1.06%, www.usaa.com
Deposit Account, Bank of Internet, 2.5%, www.bankofinternet.com
1-Year CD, NewDominion Bank, 2.26%, www.newdominiondirect.com
It was surprising to hear how low interest rates are for CDs. Thanks for investigating where we can get the biggest bang for our buck(o)s!
ReplyDeleteI'm still leaving most of mine in US & European markets..just manipulating them VERY CAREFULLY.
ReplyDeleteAnd it isn't passive income(that is often said) if you trade it and keep on top of it every day.
CDs suck(return wise), but I can understand using them to a point.
I am glad you are doing these posts here now, Ken. Very good info!
ReplyDeletebe well...
Thanks for the info, Ken!
ReplyDeleteBest,
Marty
The interest rates are still so low. I too, have been searching for better rates. Last year, I was lucky to find some for 5%.
ReplyDeleteHugs, Rose
Good for you for shopping around and find the best rate out there. I check my portfolio once a week and check in with my investment firm. I'm staying in stocks & bonds. I went with a few high risk funds just to see what will happen :o
ReplyDelete