Capital One Offers Enticing Rate on InterestPlus Online Savings Account

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Capital One offers a great interest rate on its InterestPlus account, but only if you read the fine print and follow the rules.

If you have $1,000 or more to invest in your savings account, you may want to take a look at the Capital One InterestPlus Online Savings Account. The APY is 1.35%, which is currently one of the highest rates available, and Capital One states there are no fees for this account. You also get an extra 10% quarterly bonus on your interest earned, but to qualify for the extra 10% bonus you must have at least $15,000 in your account each month or have a Capital One credit card that you use at least once a month.

If you have excellent credit are interested in taking advantage of the InterestPlus 10% bonus but don’t have $15,000 to keep in your account every month, you may want to consider getting either the Capital One No Hassle Cash Rewards Card or the Capital One Platinum Prestige card. Both cards come with a 0% introductory APR until July 2011. After the introductory APR period is over, the APY of the No Hassle Cash Rewards card increases to 14.9% and the APY of the Platinum Prestige card increases to 11.9%. Neither card has an annual fee, which is great news for customers in a time when banks are commonly increasing fees in an attempt to maximize profits.

If you’re a Costco member, you can get an even better interest rate through the Capital One InterestPlus account. Costco members can take advantage of a 1.40% interest rate, but there’s a catch. To get the higher interest rate through Costco, you must have $5,000 in your account instead of $1,000. You can still get the extra 10% quarterly bonus, but only if you keep at least $15,000 in your account each month. Through the Costco program, you can’t get the 10% bonus by just using a Capital One credit card once a month. However, you are eligible for an additional Costco member incentive: $60 if you’re an Executive Member, and $20 if you’re a Gold Star and Business member. This additional incentive will be deposited into your first Direct Banking account opened through the Costco program with at least $5,000 deposited into the account in the first 30 days after opening.

For the best information on credit cards click on the "Credit Cards" tab above, for the best information on savings account rates click the "Savings" tab above.


SallieMae Offers High-Yield Savings at 1.40% APY and Innovative Way to Help College Savings

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SallieMae, the company commonly known for offering and servicing student loans, is offering a competitive high-yield savings account and one large added bonus: 10% matching funds from UPromise earnings to help finance education costs.

In an age where savings accounts and other cash-savings options commonly paying less than 1% APY, any bank that offers APYs over that amount deserves a second look. Because of low overhead costs, internet-only banks are giving larger banks a run for their money as they are often able to offer better deals on interest rates even in this poor economy.

SallieMae is currently offering a 1.40% APY on their new online high-yield saving account. There is no minimum balance, no monthly fees, and it offers daily compounded interest. If you are interested in CDs, SallieMae is also offering a 12-month CD at 1.55% APY, a 36-month CD at 2.40% APY, and a 60-month CD at 3.00% APY. 

The deal doesn’t end there, however. Sallie Mae has partnered with UPromise, the college savings service for students and their family, to match 10% of annual UPromise earnings. You don’t have to be a member of UPromise to take advantage of the SallieMae High-Yield Savings Account and the 1.40% APY, but if you’re a member of UPromise or if you have children going to college, it’s definitely an added bonus. The money you earn from shopping at UPromise partners goes into your UPromise account, which then can be used to invest in your high-yield savings account, into a tax-deferred 529 plan, or you can also use it to directly pay down your student loans.

One drawback to using internet banks, like SallieMae, is that ATM use may incur fees. However, if you are using an account solely for savings purposes and are able to transfer funds in and out of the account electronically when needed, the added convenience of an internet bank and the higher interest rates make it an attractive option.

For the best information on savings and money market account interest rates, click on the "Savings" tab above.


Fed Keep Rates at 0% Offering No Hope for Savers

Fed Keep Rates at 0% Offering No Hope for Savers

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

The Federal Reserve released its FOMC Statement today and there were no surprises. The Fed reiterated its support for "exceptionally low levels of the federal funds rate for an extended period." That means savers will continue to earn almost no rate of return on savings accounts and very little on longer-term certificates of deposit.

The Federal Reserve released its FOMC Statement today and there were no surprises. The Fed reiterated its support for "exceptionally low levels of the federal funds rate for an extended period." That means savers will continue to earn almost no rate of return on savings accounts and very little on longer-term certificates of deposit. This may force many investors to think about putting cash into other investments such as bonds

The statement pointed out that Europe's problems along with a detoriating real estate market and high levels of unemployment will keep the economy subdued for some time to come. Those expecting a roaring V-shaped recovery are starting to realize that's not going to happen. At this point, the world economy is one more shock away from falling back into recession.

For savers this is more of the same. Savings and CD rates will continue to drift lower. The bright side has been the significant slide in mortgage rates since peaking in mid-April. The average 30-year mortgage rate is now 4.76%, down from 5.25 in April 2010.

Low rates will also continue to support the stock market. Dividend stocks like Verizon (VZ), AT&T (T), and Pfizer (PFE) lead Dow stocks in terms of yield and offer those needing income one way of generating it. Verizon for instance pays 6.85% versus an average savings rate of 1.31%. But unlike FDIC bank stocks, they also offer the potential loss of principle.

The good news for savers and bond holders alike is the absence of inflation. According to the statement:

"Prices of energy and other commodities have declined somewhat in recent months, and underlying inflation has trended lower. With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time."

Those spreading panic about soaring inflation in 2009 were dead wrong, at least so far. The economy needs a strong heartbeat to stir inflation and all we have now are some sporadic pulses. Despite any sign of  inflation, gold remains near a 52-week high as investors remain spooked about Europe's sovereign debt issues.