# High Interest Savings **URL:** \ **Category:** In My Humble Opinion\ **Created:** [February 13, 2008, 7:18pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478 "2008-02-13T19:18:05Z")\ **Posts on this page:** 13\ **Page:** 1
**Author:** ![pbbth](https://avatars.discourse-cdn.com/v4/letter/p/f9ae1b/32.png) [@pbbth](https://boards.straightdope.com/u/pbbth)\ **Post date:** [February 13, 2008, 7:18pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/1 "2008-02-13T19:18:05Z")
My account with ING direct was set up with 4.25% interest rates when I signed up a year ago. Over the last few months it has fallen to 3.4% and before long will be below 3%. I am now looking for a new bank with a higher interest rate to hold my “buying my dreamhouse” money. Anybody have any suggestions as to where to move my account? Which bank do you use for your high interest account? How much interest do you get? Is there a minimum balance for you to maintain that account? ---
**Author:** ![jharvey963](https://avatars.discourse-cdn.com/v4/letter/j/54ee81/32.png) [@jharvey963](https://boards.straightdope.com/u/jharvey963)\ **Post date:** [February 13, 2008, 7:25pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/2 "2008-02-13T19:25:57Z")
All savings interest rates are falling, but you might want to check out Etrade Bank. Before the rate drop, they were paying 5.05% on their savings accts. I think they are at 4.4% now. Also, depending on your tax bracket, you might get a better after-tax return putting it in a tax-exempt money market fund. In California, check out Vanguard California Tax Exempt Money Market Fund (VCTXX), or one appropriate to your state. J. ---
**Author:** ![JThunder](https://avatars.discourse-cdn.com/v4/letter/j/e95f7d/32.png) [@JThunder](https://boards.straightdope.com/u/JThunder)\ **Post date:** [February 13, 2008, 7:27pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/3 "2008-02-13T19:27:52Z")
HSBC Direct offers a better interest rate than ING, but not by a huge amount. ---
**Author:** ![tremorviolet](https://avatars.discourse-cdn.com/v4/letter/t/e47774/32.png) [@tremorviolet](https://boards.straightdope.com/u/tremorviolet)\ **Post date:** [February 13, 2008, 8:31pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/4 "2008-02-13T20:31:42Z")
Here’s a list at the [Fat Wallet forums](http://www.fatwallet.com/forums/finance/437553/). Looks like everything’s around 4%-ish. I just checked and GMAC (where my saving are) is down to 3.80%. ---
**Author:** ![ZipperJJ](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zipperjj/32/211_2.png) [@ZipperJJ](https://boards.straightdope.com/u/ZipperJJ)\ **Post date:** [February 13, 2008, 8:40pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/5 "2008-02-13T20:40:05Z")
I use [Ford Interest Advantage](http://www.fordcredit.com/interestadvantage/index.jhtml) which has been higher than everyone for a while, but it’s way down now (it’s been up over 5% for the past year for under $15,000). It’s not FDIC insured, requires a minimum of $1000 in the account and a $50 minimum monthly deposit. It is liquid in that you get checks and can transfer easily between your account and a bank account. Works great for me, but not for everyone. ---
**Author:** ![MeanJoe](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/meanjoe/32/5693_2.png) [@MeanJoe](https://boards.straightdope.com/u/MeanJoe)\ **Post date:** [February 13, 2008, 11:23pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/6 "2008-02-13T23:23:45Z")
Look for financial institutions that are attempting to raise capital through increased deposits. Typically institutions in need of cash flow will offer high interest savings accounts as an attempt to quickly get that cash. I would not be surprised to see better rates at places like Countrywide. MeanJoe ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [February 13, 2008, 11:38pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/7 "2008-02-13T23:38:52Z")
You might think about plunking it into CDs. At least the rate won’t drop during the term of the CD. Some banks offer a “jump up” CD: when interest rates go up, so do the CD rates. Of course, they usually offer this when they think there is a downturn coming. ---
**Author:** ![Digital\_Stimulus](https://avatars.discourse-cdn.com/v4/letter/d/aeb1de/32.png) [@Digital\_Stimulus](https://boards.straightdope.com/u/Digital_Stimulus)\ **Post date:** [February 13, 2008, 11:47pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/8 "2008-02-13T23:47:52Z")
I generally check the following sites every so often: [e-Money Central](http://www.emoneycentral.com/Savings-Money-Market-Rates.1943.0.html) (link seems to change every so often) [Bank deals blog](http://bankdeals.blogspot.com/) ---
**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\ **Post date:** [February 14, 2008, 3:15pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/9 "2008-02-14T15:15:56Z")
[QUOTE=Chefguy] You might think about plunking it into CDs. At least the rate won’t drop during the term of the CD. Some banks offer a “jump up” CD: when interest rates go up, so do the CD rates. Of course, they usually offer this when they think there is a downturn coming. [/QUOTE] :dubious: Yeah, but CD rates are down too. It might be helpful for the _next_ downturn, but it won’t help now without a time machine. Generally, CD rates are not much better than or even worse than the savings rates anyway. Etrade has worked fine for me. They took forever to send my 1099, but that’s easy to calculate anyway just by looking at interest paid. Their rates did go down in January, probably around the same time that ING went down. ---
**Author:** ![NurseCarmen](https://avatars.discourse-cdn.com/v4/letter/n/5daacb/32.png) [@NurseCarmen](https://boards.straightdope.com/u/NurseCarmen)\ **Post date:** [February 14, 2008, 5:32pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/10 "2008-02-14T17:32:49Z")
[QUOTE=ZipperJJ] I use [Ford Interest Advantage](http://www.fordcredit.com/interestadvantage/index.jhtml) which has been higher than everyone for a while, but it’s way down now (it’s been up over 5% for the past year for under $15,000).\*\* It’s not FDIC insured\*\* [/QUOTE] (bolding mine) :eek: :eek: :eek: If they fold up shop tomorrow, they can take your money with them!?!??!! ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [February 14, 2008, 7:09pm UTC](https://boards.straightdope.com/t/high-interest-savings/437478/11 "2008-02-14T19:09:13Z")
[QUOTE=thelurkinghorror] :dubious: Yeah, but CD rates are down too. It might be helpful for the _next_ downturn, but it won’t help now without a time machine. Generally, CD rates are not much better than or even worse than the savings rates anyway. Etrade has worked fine for me. They took forever to send my 1099, but that’s easy to calculate anyway just by looking at interest paid. Their rates did go down in January, probably around the same time that ING went down. [/QUOTE] Not sure what the frowny face is for. If you put your money in a bank account that is paying 4% vs 3%, how long do you think it will take before you’re right down there at the lower rate? You’re better off finding a bank with the highest CD interest than one with the highest passbook interest, unless you need the money in the short term. In any case, you’re not keeping up with inflation at those returns rates. ---
**Author:** ![ZipperJJ](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zipperjj/32/211_2.png) [@ZipperJJ](https://boards.straightdope.com/u/ZipperJJ)\ **Post date:** [February 15, 2008, 3:41am UTC](https://boards.straightdope.com/t/high-interest-savings/437478/12 "2008-02-15T03:41:43Z")
[QUOTE=NurseCarmen] (bolding mine) :eek: :eek: :eek: If they fold up shop tomorrow, they can take your money with them!?!??!! [/QUOTE] Yep. It’s a risk I’m willing to take right now. I’m banking on the idea that Ford Credit will not fold up shop and disappear. Get sold, maybe. Die a slow death, maybe. But not anything that would keep me from being able to pull my money out ASAP. ---
**Author:** ![AuntiePam](https://avatars.discourse-cdn.com/v4/letter/a/f19dbf/32.png) [@AuntiePam](https://boards.straightdope.com/u/AuntiePam)\ **Post date:** [February 15, 2008, 5:21am UTC](https://boards.straightdope.com/t/high-interest-savings/437478/13 "2008-02-15T05:21:59Z")
I wonder if I can talk the rest of the City Council into using a non-local bank for our CDs. We tried to renew one for $40K that had been drawing 5.25%. The bank said they didn’t want to renew – they didn’t want our money at all. (The mayor must have pissed somebody off.) We went to another local bank and they offered 3%. I’m printing out the Bank Deals pages and taking it to the next meeting. We have more CDs maturing this year.