Yesterday I went to the bank to deposit a check, and as I was waiting I overheard someone opening a savings account that paid a paltry 1% APR. (Apparently, this was a special offer; the regular rate was only 0.4% APR.) It was all I could to keep from interrupting and telling him, "Don't do it!". If you are looking for somewhere to put your cash, I would encourage you to consider the following:
- Checking: Charles Schwab - 4.25% APR on checking with no monthly fees, minimum balance or ATM charges.
- Savings: HSBC Direct - 5.05% APR, no fees or minimum balance
- Money Market: AmTrust Direct - 5.36% APR, no fees on online transfers, $1 minimum
Don't settle for what your local brick and mortar bank pays. There are better options out there. Make your money work for you.
2 comments:
The AmTrust one looks good. What is the difference between it and everything else? And why not start an IRA instead?
AmTrust is a money market which means it invests in things like Treasury Bills, Repurchase Agreements, Negotiable CD's, Commerical Paper, etc. These are all short term, high quality instruments. This means that it is very safe and very stable and is good for short term goals like an emergency fund. For an IRA, someone young would want to invest in mutual funds that invest in stocks which have more volatility but offer a much higher return over the long run. It's important to match the style of investment (i.e. money market vs. equity mutual fund) with the goal in mind (short term or long term).
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