The Savvy Investor Can Dramatically Increase Safe Returns in Minutes

Rate information contained on this page may have changed. Please find latest cd rates.

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.

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. 

 

 

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

Your code to embed this article on your website* :

*You are allowed to change only styles on the code of this iframe.

Today's Highest Online CD Rates

Bank Product Term Interest Rate (APY)
Navy Federal Credit Union 1-Year 0.85% APY with $100,000 minimum
Primary Bank 1-Year 0.80% APY with $1,000 minimum
Gateway First Bank 1-Year 0.75% APY with $25,000 minimum
Primary Bank 3-Year 1.00% APY with $1,000 minimum
USAA Federal Savings Bank 3-Year 0.91% APY with $175,000 minimum
Comenity Direct 3-Year 0.85% APY with $1,500 minimum
Primary Bank 5-Year 1.30% APY with $1,000 minimum
Navy Federal Credit Union 5-Year 1.25% APY with $100,000 minimum
USAA Federal Savings Bank 5-Year 1.11% APY with $175,000 minimum

See More Online CD Rates →

Comments

  • tightwad

    April 23, 2009

    Great timing Dan, the highest rated bank here, AmericaNet, just announced they are reducing rates to 2% on May 5.

  • «
  • Page 1 of 1
  • »
Add your Comment