# Best interest rate for my money? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [March 18, 2012, 11:12pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170 "2012-03-18T23:12:55Z")\ **Posts on this page:** 15\ **Page:** 1
**Author:** ![startingover](https://avatars.discourse-cdn.com/v4/letter/s/ec9cab/32.png) [@startingover](https://boards.straightdope.com/u/startingover)\ **Post date:** [March 18, 2012, 11:12pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/1 "2012-03-18T23:12:55Z")
Let’s say a fella had two situations: 1.) $15,000 that you would access 2-3 times a month. I.E., money goes into it, and money comes out to fill a checking account to pay bills. All can be done electronically - no real need for checks. 2.) $35,000 that you don’t need to “touch” for 2-3 years. Likely more like 3. This is a “fund” for a new car that really won’t be needed for that period of time. I’m trying to do better than 0.55% that I am realizing now locally. My checking is through Chase and they aren’t paying boo on the checking. I’m okay with that as it’s a holding ground for JUST enough to pay bills. It’s where the $15k and $35k “sit” that I want to be certain I am “earning” as much interest as I can. Thanks in advance! ---
**Author:** ![Terr](https://avatars.discourse-cdn.com/v4/letter/t/839c29/32.png) [@Terr](https://boards.straightdope.com/u/Terr)\ **Post date:** [March 18, 2012, 11:19pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/2 "2012-03-18T23:19:15Z")
3-year CD rates are currently 1.2 to 1.6%. For the “liquid” $15K, I don’t think you can get much better than the 0.55%. ---
**Author:** ![Duckster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/duckster/32/1244_2.png) [@Duckster](https://boards.straightdope.com/u/Duckster)\ **Post date:** [March 18, 2012, 11:20pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/3 "2012-03-18T23:20:24Z")
[https://origin.bankrate.com/](https://origin.bankrate.com/) ---
**Author:** ![iamthewalrus\_3](https://avatars.discourse-cdn.com/v4/letter/i/258eb7/32.png) [@iamthewalrus\_3](https://boards.straightdope.com/u/iamthewalrus_3)\ **Post date:** [March 19, 2012, 7:45pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/4 "2012-03-19T19:45:12Z")
Ally bank has an online savings account that pays [0.84%](http://www.ally.com/bank/online-savings-account/#tabs=rates). Better than 0.55% for the 15K. It looks like it’s one of the highest (if not _the_ highest) rates available. ---
**Author:** ![ITR\_champion](https://avatars.discourse-cdn.com/v4/letter/i/c67d28/32.png) [@ITR\_champion](https://boards.straightdope.com/u/ITR_champion)\ **Post date:** [March 20, 2012, 2:57pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/5 "2012-03-20T14:57:16Z")
It depends on whether you’re willing to accept a little bit of risk, versus having the absolute guarantee of a savings account or CD. If you’re okay with a little bit of risk for the $35,000 investment, look at some of the [Vanguard Bond funds](https://personal.vanguard.com/us/funds/vanguard/all?reset=true&sort=name&sortorder=asc&assetclass=bond). ---
**Author:** ![Barkis\_is\_Willin](https://avatars.discourse-cdn.com/v4/letter/b/a183cd/32.png) [@Barkis\_is\_Willin](https://boards.straightdope.com/u/Barkis_is_Willin)\ **Post date:** [March 20, 2012, 4:15pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/6 "2012-03-20T16:15:57Z")
> [@iamthewalrus\_3](#): > > Ally bank has an online savings account that pays [0.84%](http://www.ally.com/bank/online-savings-account/#tabs=rates). Better than 0.55% for the 15K. It looks like it’s one of the highest (if not _the_ highest) rates available. And Ally has unlimited monthly withdrawals. When I opened an account there 2 years ago the rate was 1.24%. It is down to 0.84% now, which is still better than anywhere else by a good margin for a pretty liquid savings account. ---
**Author:** ![BangBang](https://avatars.discourse-cdn.com/v4/letter/b/ebca7d/32.png) [@BangBang](https://boards.straightdope.com/u/BangBang)\ **Post date:** [March 20, 2012, 4:37pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/7 "2012-03-20T16:37:28Z")
I wish we could just set up a scam where I borrow at the US rate - I’ll give you 2% gladly - and invest at the Australian interest rate, 6% for an online saver type account - i.e. totally liquid. 🙂 ---
**Author:** ![Trom](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@Trom](https://boards.straightdope.com/u/Trom)\ **Post date:** [March 20, 2012, 4:59pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/8 "2012-03-20T16:59:41Z")
> [@BangBang](#): > > I wish we could just set up a scam where I borrow at the US rate - I’ll give you 2% gladly - and invest at the Australian interest rate, 6% for an online saver type account - i.e. totally liquid. 🙂 Meet the [carry trade.](http://www.investopedia.com/terms/c/currencycarrytrade.asp#axzz1pg30DpRA) ---
**Author:** ![Chessic\_Sense](https://avatars.discourse-cdn.com/v4/letter/c/7c8e57/32.png) [@Chessic\_Sense](https://boards.straightdope.com/u/Chessic_Sense)\ **Post date:** [March 20, 2012, 5:57pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/9 "2012-03-20T17:57:16Z")
Have you seen our “Lending Club experiences” thread? If you want some risk, you realistically get about 6% a year. If you want to play the stock market, go with something like HYG or DVY or the safer SPLS. I hear Apple’s paying 😉 ---
**Author:** ![Rigamarole](https://avatars.discourse-cdn.com/v4/letter/r/77aa72/32.png) [@Rigamarole](https://boards.straightdope.com/u/Rigamarole)\ **Post date:** [March 20, 2012, 6:47pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/10 "2012-03-20T18:47:45Z")
> [@BangBang](#): > > I wish we could just set up a scam where I borrow at the US rate - I’ll give you 2% gladly - and invest at the Australian interest rate, 6% for an online saver type account - i.e. totally liquid. 🙂 Not a scam at all - it’s a perfectly legitimate investment strategy. But as **Trom** ’s link points out, the big risk is that fluctuation in the exchange rate could put you out of business quite quickly. ---
**Author:** ![Yeticus\_Rex](https://avatars.discourse-cdn.com/v4/letter/y/a698b9/32.png) [@Yeticus\_Rex](https://boards.straightdope.com/u/Yeticus_Rex)\ **Post date:** [March 20, 2012, 11:01pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/11 "2012-03-20T23:01:01Z")
[Tax free Muni bonds.](http://www.schwab.com/public/schwab/investing/accounts_products/investment/mutual_funds/schwab_mutual_funds/fixed_income/tax_exempt) ---
**Author:** ![Terr](https://avatars.discourse-cdn.com/v4/letter/t/839c29/32.png) [@Terr](https://boards.straightdope.com/u/Terr)\ **Post date:** [March 20, 2012, 11:18pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/12 "2012-03-20T23:18:35Z")
> [@Yeticus\_Rex](#): > > [Tax free Muni bonds.](http://www.schwab.com/public/schwab/investing/accounts_products/investment/mutual_funds/schwab_mutual_funds/fixed_income/tax_exempt) Not risk-free. ---
**Author:** ![Jonathan\_Chance](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jonathan_chance/32/701_2.png) [@Jonathan\_Chance](https://boards.straightdope.com/u/Jonathan_Chance)\ **Post date:** [March 21, 2012, 12:40am UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/13 "2012-03-21T00:40:02Z")
It would be difficult for me to say how much I could beat that rate by given the data provided. There are too many other factors involved such as state that the saver is resident, risk tolerance, actual planned withdrawals and such. But I know I could beat that somehow. It would be just a matter of how. ---
**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\ **Post date:** [March 21, 2012, 1:17am UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/14 "2012-03-21T01:17:06Z")
> [@Barkis\_is\_Willin](#): > > And Ally has unlimited monthly withdrawals. When I opened an account there 2 years ago the rate was 1.24%. It is down to 0.84% now, which is still better than anywhere else by a good margin for a pretty liquid savings account. From checking maybe. From savings? No, I don’t think so. You get 6 free withdrawals per month, just like every other bank in the US. This is a limit by Federal law. They also have a No-Penalty CD for 0.93% APY. I’m not sure how that works myself, or how it differs from savings. ---
**Author:** ![Yeticus\_Rex](https://avatars.discourse-cdn.com/v4/letter/y/a698b9/32.png) [@Yeticus\_Rex](https://boards.straightdope.com/u/Yeticus_Rex)\ **Post date:** [March 21, 2012, 8:04pm UTC](https://boards.straightdope.com/t/best-interest-rate-for-my-money/616170/15 "2012-03-21T20:04:58Z")
> [@Terr](#): > > Not risk-free. Correct…but you can reduce the risk to near 0% by only selecting the highest rated bonds. My portfolio is considered Moderately Conservative by my broker which has varied 15-25% on bonds over the last 10 years which served me quite well when the market tanked a few years ago. Also, the OP didn’t say whether or not they were adverse to risk, so some consideration should be given to this option. IANAB, so consult a Broker before making any purchases.