Money Market / Savings Account help

BaggedLancer

Ok, I am looking to open a Savings account or money market account at a bank or investment company. I am looking for the highest interest possible. I have already been to Citizens bank(current checking bank) and Bank of America and they both have pretty crappy rates.(Citizens was .5% for Savings and 1.59% for MM).

What do you all use/recommend?

Oh, and the absolute max first deposit cannot be more than $3,000-$5,000, don't want to cripple my checking account since I have too many bills.:D

tryrrthg

I have an ING Direct savings account. It's not the highest out there, but it didn't have a lot of the restrictions that some of the other have. I think I'm getting 4.5% interest.

www.ingdirect.com

BaggedLancer

ahh yes, ive heard of ING, but how do you access the money right away? and have you been happy with the account? I wonder if I could link it to my current checking account at Citizens.....

I'm kinda weary about a bank that has no local branches....

SLOCOOKN

Also try AG Edwards for a money market.

PhantomOG

do some reading in the FatWallet Finance Forum for rates/pros/cons of various banks.

tryrrthg

BaggedLancer wrote:

ahh yes, ive heard of ING, but how do you access the money right away?

I'm kinda weary about a bank that has no local branches....

I just plan ahead if I need the money. to me it's a savings account, if I need the money it's something I'm planning for so I'll just give myself some extra time to transfer the money. Usually takes a day or two to post.

that's how they have such high interest rates, they don't have all the expenses that branches do.

EDIT: yep, I'm happy with it. and they do link to your primary checking account no matter what bank you have.

shack

Most banks will run ads in the Sunday business section of your local newspaper with "teaser rates" for money market accounts. Be sure and read the fine print as many of the higher rates are for 60 - 90 days and then they drop down to the normal rate (which are the .50% to 2.00% rates you are finding).

Look to see if you can join a credit union. They used to be limited membership but in some places they are just like banks and anybody in their geographic area can join. They typically pay higher rates.

Look at CDs as well. You can get them for as short as 30 days (not recommended) or 90 days 6 months, etc. There are often promo rates here as well. 4% - 5% is not unusual for a CD. How long you want to leave it in a CD will determine the rate. We are actually seeing an inverted yield curve right now where short term rates are higher than long term rates.

BaggedLancer

tryrrthg wrote:

I just plan ahead if I need the money. to me it's a savings account, if I need the money it's something I'm planning for so I'll just give myself some extra time to transfer the money. Usually takes a day or two to post.

that's how they have such high interest rates, they don't have all the expenses that branches do.

EDIT: yep, I'm happy with it. and they do link to your primary checking account no matter what bank you have.

Gotcha, I'm just reading over their site, kinda reminds me of paypal but without the BS. All electronic.....

BaggedLancer

shack wrote:

Most banks will run ads in the Sunday business section of your local newspaper with "teaser rates" for money market accounts. Be sure and read the fine print as many of the higher rates are for 60 - 90 days and then they drop down to the normal rate (which are the .50% to 2.00% rates you are finding).

Look to see if you can join a credit union. They used to be limited membership but in some places they are just like banks and anybody in their geographic area can join. They typically pay higher rates.

Look at CDs as well. You can get them for as short as 30 days (not recommended) or 90 days 6 months, etc. There are often promo rates here as well. 4% - 5% is not unusual for a CD. How long you want to leave it in a CD will determine the rate. We are actually seeing an inverted yield curve right now where short term rates are higher than long term rates.

Thanks shack, i'll look into the credit union. The problem is that I need to keep the money as liquid as possible, I can't tie up money for a year to 10 years, its just feasible for me at the moment.

PolkThug

Those rates are crap. Do a national search.

BaggedLancer

PolkThug wrote:

Those rates are crap.

That's what i told the nice lookin lady behind the desk. Exact words. Maybe I shoulda been nice, she was cute and her name tag said "I speak Greek!" and her name was something like Athanananasia or something

candyliquor35m

I opened a Capital One money market account last month with no minimum balance at 4.8% apr. I had to open it online to get that rate. Then a few days later I saw someone else advertising 5.05%. I think all the banks are going to start matching these rates unless they want to lose their deposits which in my case was Chase.

shack

BaggedLancer wrote:

Thanks shack, i'll look into the credit union. The problem is that I need to keep the money as liquid as possible, I can't tie up money for a year to 10 years, its just feasible for me at the moment.

Most banks and credit unions will offer CDs in 30 days, 3 months, 6 months or 12 months (sometimes they will offer 7 and 13 months as promotions). They can be cashed in early or you can borrow against them at a small percentage over the earnings rate if an emergency come up.

Shizelbs

I'm doing an emigrantdirect.com account. 5.15% I believe.

kn505

I use both ING direct and EmigrantDirect and am happy with their services. The rate for EmigrantDirect is 5.05%. ING has a sign on bonus, $25?, if you are referred by one of its customer.

pacificoastbear

i have an ing account....they are excellent...

close to 5% rate and it is simple to setup and transfer funds back and forth between linked accounts ....

although there is an introductory rate that is better offered through HSBCdirect ... i don't have the exact link but a google search should turn it up....HSBCdirect is the same type of account as ingdirect .. good luck

BaggedLancer

I am probably gonna set up ING tomorrow. I need $$ :mad:

wodom1

I've got both ING and EmigrantDirect. I just signed up for Emigrant a few days ago and am happy thus far.

shack

You guys may like thier MM products...but their investment funds division is terrible. I wouldn't have any money with them if I had a choice for our 401K. ING funds have been performing way below market and their fee structure is pretty bad as well. Fortunatly we are leaving ING. It can't be too soon IMO.

Polkersince85

Not a plug for them but check out Eloan for Cd's or Vanguard for MM/stock funds. International funds are doing good at the present. As always, past returns..........