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CC · Guest

Because of preparing tax documents, I just noticed my down payments in some banks only earns so little interests. Citizen Bank pays $5.5 interests a year on about $30k. Etrade used to pay more than 3%, but after the first year, the rate became about 0.3%. What a joke!

So which bank offers the best saving account rates? Or where do you guys leave your money?

admin · Posted: Wed Mar 24, 2010 4:55 pm GMT Post subject:

Check out this site:

http://www.bestcashcow.com/

- admin

admin · Posted: Thu Mar 25, 2010 5:02 pm GMT Post subject:

Also, I touched on what I'm doing with my own savings when somebody asked in this thread:

http://www.bostonbubble.com/forums/viewtopic.php?t=2373

- admin

balor123 · Joined: 08 Mar 2008 Posts: 1204

Thanks for the link - hadn't seen that site before. Anyway, for savings I like Costco Capital One. Savings rate is 1.43% right now and it has been among the top for a while now. The 10% bonus pushes it over the edge of real competitors (not teasers that require constant rate chasing). Has very high transfer limits and super fast transfers. Can link to unlimited number of accounts. I've also used Dollar Savings Direct and Discover Bank but didn't like them in these respects.

Best rate will be with rewards checking. You might have to rate chase but so far the rates have changed very slowly (maybe move after 1 year). Even if you don't move, the rates are still pretty good. Dedham Savings is now at 3%, which is still double what any savings bank pays, despite not being the top account anymore. Danvers Bank is at 4% and has been there for almost a year now.

balor123 · Joined: 08 Mar 2008 Posts: 1204

Admin - what do you think about opening an account in Australia? They don't seem to have an FDIC equivalent but then again not many countries do. I wonder if any good banks there will provide an account in American dollars.

admin · Posted: Mon Mar 29, 2010 1:31 pm GMT Post subject:

balor123 · Joined: 08 Mar 2008 Posts: 1204

True, the average emerging market debt was recently yielding about the same - 6.5% and I've read suggestions that this debt is actually safer now than established markets, thanks to low leverage. Just the historical behavior of it gives me shudders Smile

You can get good currency hedging through ETFs like the PowerShares carry trade but I don't think it's place is in a long term investment portfolio, not short term like saving for a downpayment. But for such a portfolio you are likely getting that diversification through your stock and bond funds already.

Australia is a good currency to hold for a number of reasons though. It is strong in commodities and many Asians seem to be using it to hold their savings (though if too many start using it then carry trade effect becomes a problem). Israel is also good except for the possibility of a war erupting. Unfortunately, most of the currencies are just too volatile to hold.

CC · Guest

CC · Guest

balor123 · Joined: 08 Mar 2008 Posts: 1204

That is correct. You'll have a hard time finding any banks that pay on more than $25k now. You just need to open lots of accounts. I have 4 to hold my downpayments, though I could use another 1-2. It's not really that much time but it is a pain. The money is good enough to warrant the pain for me (an extra ~$2k/yr).

CC · Guest

I can't imagine you have 4 accounts. The trouble is they ask you to perform at least 12 debit card transactions a month. 4 accounts will require 48 transaction a month!

BTW, I just opened the account. One thing I haven't tried is:

"receive their monthly statement electronically"

https://www.danversbank.com/Personal/Checking/Free-Rewards-Checking.aspx

I just set up the online banking, but not so sure how to do that (there is a statement link on their website). I can call Danvers Bank tomorrow. If you know how to do that, that will be great.

Thanks!

balor123 · Joined: 08 Mar 2008 Posts: 1204

Yes it is a lot of transactions but it is possible to do naturally by going out of your way to generate small transactions. At the very minimum you can "manufacture" small charges. There are lists of charities, for example, where you can donate $1 a day for a specified number of days a month.

I believe you get the interest for free the first month no matter what. You will receive an email notifying you of the statement every month afterwards, which you'll need to download from the website.

admin · Posted: Fri Apr 23, 2010 11:51 am GMT Post subject:

balor123 · Joined: 08 Mar 2008 Posts: 1204

It turns out there are minimum charges of about $1 - $1.50. The Paypal fees would be cheaper than donations. I don't know about easier since you can't schedule charges to happen automatically, can you? I guess for $150/yr in fees it is worth the hassle. I worry a little bit about losing access to these accounts though so I try to do realistic transactions. Haven't heard of anyone having problems though. Maybe it's worth the risk.

balor123 · Joined: 08 Mar 2008 Posts: 1204

For fillers, I pay bills in smaller increments than I would otherwise have been paying by the way. That way there is no fee since you were going to pay those bills anyway however entering all those transactions still takes time.