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stormdogHelp me out here, money people.
Say there's a bank, this one for instance, that has a rewards checking account that offers 5.01% APY. They also offer a savings account, but neither it (at a paltry 0.2% APY) nor even their best CDs (at 3.8% APY tied to a six year commitment) return nearly as high a rate.
Even current rates with online high-yield savings accounts, like those at ING Direct or GMAC aren't nearly as high as the interest rate on this checking account.
So why wouldn't one not bother with a savings account or CDs and just keep all liquid assets in the checking account? Is it merely for convenience's sake so that your savings are in a different account and you don't accidentally spend them?
Aren't savings accounts and money market accounts and CDs and such supposed to give you better returns at the expense of slightly reduced accessibility? Instead, it seems to me like they offer reduced accessibility and lower interest rates.
Confused dog is confused. One thing for sure is that, even if I did want to open up some CDs, they'd be for short terms. Rates are so low right now that they're kind of moot, and can only go up as the economy recovers. Is that why this looks kind of weird to me? Will rates on savings accounts and CDs jump up above those on rewards checking accounts with the economy (assuming the economy does jump up) while rates on checking will stay the same? I've been watching the interest rate on my current savings account dropping...dropping...dropping for a year now.
(Hey, and while I'm at it, what do you local (or non-local too, especially if you use a national or regional bank!) folks think of the banks and services that you use? I'm thinking about a new checking account, and moving savings around.)
Say there's a bank, this one for instance, that has a rewards checking account that offers 5.01% APY. They also offer a savings account, but neither it (at a paltry 0.2% APY) nor even their best CDs (at 3.8% APY tied to a six year commitment) return nearly as high a rate.
Even current rates with online high-yield savings accounts, like those at ING Direct or GMAC aren't nearly as high as the interest rate on this checking account.
So why wouldn't one not bother with a savings account or CDs and just keep all liquid assets in the checking account? Is it merely for convenience's sake so that your savings are in a different account and you don't accidentally spend them?
Aren't savings accounts and money market accounts and CDs and such supposed to give you better returns at the expense of slightly reduced accessibility? Instead, it seems to me like they offer reduced accessibility and lower interest rates.
Confused dog is confused. One thing for sure is that, even if I did want to open up some CDs, they'd be for short terms. Rates are so low right now that they're kind of moot, and can only go up as the economy recovers. Is that why this looks kind of weird to me? Will rates on savings accounts and CDs jump up above those on rewards checking accounts with the economy (assuming the economy does jump up) while rates on checking will stay the same? I've been watching the interest rate on my current savings account dropping...dropping...dropping for a year now.
(Hey, and while I'm at it, what do you local (or non-local too, especially if you use a national or regional bank!) folks think of the banks and services that you use? I'm thinking about a new checking account, and moving savings around.)
