It makes little sense to keep money in money market accounts in a big bank or in most local and regional banks, not when there are always a handful of banks really out there competing for your money. It makes even less sense when all these savings accounts are equally insured by the FDIC. A lot of people search for the best rates for CDs. Far fewer pay attention to the significant spreads for regular savings accounts in FDIC institutions.
Most simple savings accounts offer miniscule returns these days in the range of .25% and .35%. But there are equally safe returns, ten to twelve times these amounts at other FDIC banks. If you stop and think about it, the difference in returns is significant. Say you have $100,000 in a savings account at .25 earning $250 a year, and you switched to one offering 3.0% return earning $3,000 a year, you would be realizing a return on the same money 12 times what you now receive or $2,750. And, I have made this kind of a switch and it only takes minutes to do; most of the banks offering high rates are on line and easy to find. Just look at this website; there are three banks offering 3% and more for regular savings.
The math is simple, the money saved is nothing to sneer at, and the time required is minimal. In these times, these kinds of savvy savings are especially important.
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Related Articles:
Internet Enables Chesapeake, EBSB and Acacia Banks to Quickly Raise Money with Promotional Savings Rates by soczie - Jun 04, 2009
DollarSavingsDirect Raises Online Savings Rate to 4% APY by Sam Cass - Oct 10, 2008.
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