Online savings accounts
After hearing our friends talk up the idea of online savings accounts, we opened one up at the beginning of the year. In two months we have already earned double the interest we would have earned if we left that money in a conventional savings account ALL YEAR! I think it's atrocious that banks only offer 0.25% APR for simple savings. We were getting 4% with this other one, but like everything else, it has dropped to 3% now.
I don't see drawbacks to this option. The money is still FDIC insured. Now yes, it does take time to get access to the money if you need it, but it's a savings account. It's supposed to stay there. We left a small amount in our ready-access, poorer than low-interest account, should an emergency arrive.
I don't see drawbacks to this option. The money is still FDIC insured. Now yes, it does take time to get access to the money if you need it, but it's a savings account. It's supposed to stay there. We left a small amount in our ready-access, poorer than low-interest account, should an emergency arrive.
Labels: savings
posted by Karen at 3/01/2008 07:56:00 AM
8 Comments:
Do you have a link to who it is with so we can look up more information? It definitely sounds interesting and something we want to look into.
How would one that is intrigued by this post find such a creature???
Yes, we are not including the name here for security purposes, but if you want to know, leave a comment, and if there is an email in your profile, I will give you the info.
Karen,
I finally found your blog through Eric T.'s The other day when you commented on mine, clicking on your name didn't take me here. Anyway, it was so good to hear from you. It sounds like you two are doing so well. Doesn't seem like you have a lot of time for music, though. ;)
If you have the same account type we have you will love the better interest rates! It is much better than our regular bank even if the rates are alittle lower right now.
I discovered these online accounts a few years ago--actually a co-worker did, and we researched it together.
So I joined up. At one point it was almost 6% interest, but it's down to 3.25 now. What we found in our research is that they are able to offer higher interest rates because they are accounts that don't require a lot of customer interaction. i.e. run through the internet. So yay for net savy people like us!
I opened one up a year ago and I love it. I earned more interest in one year than I think I have the entire time I've been at my current bank. I was disappointed that the interest rate has dropped so much lately, but hopefully it will go up again someday. And I'm the same way, I still have my bank savings for immediate emergancies, but I have to really NEED the money from online account because it does take a little longer to transfer. But that's a good thing.
I found your blog again--and that first post made me cry. Wow--what an experience..and to witness the phone call!!
Now, about these online savings accounts--can you give me some info on that? It sounds great!!
thanks Karen!!
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