Comments on: Rate Chasing with High Yield Savings Accounts http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/ finance. money. action. Mon, 22 Mar 2010 04:26:57 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Money Hacks Carnival #39 : Moolanomy http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-7340 Money Hacks Carnival #39 : Moolanomy Fri, 26 Dec 2008 05:04:07 +0000 http://www.mydollarplan.com/?p=568#comment-7340 [...] Rate Chasing with High Yield Savings Accounts posted at My Dollar Plan. [...]

[...] Rate Chasing with High Yield Savings Accounts posted at My Dollar Plan. [...]

]]> By: Weekend Personal Finance Links (sore muscle edition) http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-7304 Weekend Personal Finance Links (sore muscle edition) Sun, 21 Dec 2008 05:35:45 +0000 http://www.mydollarplan.com/?p=568#comment-7304 [...] My Dollar Plan looks at rate chasing with high yield savings accounts. [...]

[...] My Dollar Plan looks at rate chasing with high yield savings accounts. [...]

]]> By: Ken http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-7226 Ken Fri, 12 Dec 2008 23:17:14 +0000 http://www.mydollarplan.com/?p=568#comment-7226 I put my emergeny fund with a high-yield checking account with a small local bank. I'm now getting 5%. Unlike a savings account, I must make 10 debit card transactions per month and 1 direct deposit. I can make 5% on up to $25,000 (I don't have that much to my name right now). I would caution the holder of the savings account. FDIC is nice insurance, but their a slight hickup when they take over a bank, and who wants the government access into their accounts. I put my emergeny fund with a high-yield checking account with a small local bank. I’m now getting 5%. Unlike a savings account, I must make 10 debit card transactions per month and 1 direct deposit. I can make 5% on up to $25,000 (I don’t have that much to my name right now).

I would caution the holder of the savings account. FDIC is nice insurance, but their a slight hickup when they take over a bank, and who wants the government access into their accounts.

]]> By: Money Saving Links: 11/23/08 | Online Savings Blog http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6912 Money Saving Links: 11/23/08 | Online Savings Blog Sun, 23 Nov 2008 17:35:31 +0000 http://www.mydollarplan.com/?p=568#comment-6912 [...] Rate Chasing with High Yield Savings Accounts - My Dollar Plan Chasing a rate when you have $500 in the bank doesn’t make much difference. However, if you have $50,000 in the bank, a few basis points can make a big difference. [...]

[...] Rate Chasing with High Yield Savings Accounts – My Dollar Plan Chasing a rate when you have $500 in the bank doesn’t make much difference. However, if you have $50,000 in the bank, a few basis points can make a big difference. [...]

]]> By: Madison http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6850 Madison Mon, 17 Nov 2008 19:43:56 +0000 http://www.mydollarplan.com/?p=568#comment-6850 @ Dave C: Great find on the calculator. Here's a link for anyone who wants to check it out: <a href="http://www.mymoneyblog.com/archives/2006/10/the-ultimate-interest-rate-chaser-calculator.html" rel="nofollow">The Ultimate Interest Rate Chaser Calculator</a> @ Bruce: Off to check out Venture Bank... thanks for the tip! @ Dave C: Great find on the calculator. Here’s a link for anyone who wants to check it out: The Ultimate Interest Rate Chaser Calculator

@ Bruce: Off to check out Venture Bank… thanks for the tip!

]]> By: Chris http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6849 Chris Mon, 17 Nov 2008 19:38:11 +0000 http://www.mydollarplan.com/?p=568#comment-6849 Thanks for the tip on Venture Bank Direct Bruce. No minimum balance is required. Thanks for the tip on Venture Bank Direct Bruce. No minimum balance is required.

]]> By: Bruce http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6847 Bruce Mon, 17 Nov 2008 19:11:44 +0000 http://www.mydollarplan.com/?p=568#comment-6847 Venture Bank Direct is another one to consider adding to your list. They are currently at 3.80%. http://www.venturebankdirect.com Venture Bank Direct is another one to consider adding to your list. They are currently at 3.80%.

http://www.venturebankdirect.com

]]> By: Dave C http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6845 Dave C Mon, 17 Nov 2008 17:32:02 +0000 http://www.mydollarplan.com/?p=568#comment-6845 All questions of whether a move is worth it can be answered by googling "ultimate rate chaser calculator" and popping in the numbers. Most HYS calc interest by Avg daily balance and credit it at the end of the month, if you close your account you forfeit that month's interest. I've gone from ING, to Emigrant, to Countrywide, and as of today to DollarSavingsDirect. CW is down to 2.9% and with BOA as the owner I doubt will ever be competitive again. DSD is 4% currently and if it holds I'll make up the difference in under two weeks (40-50k in funds). All questions of whether a move is worth it can be answered by googling “ultimate rate chaser calculator” and popping in the numbers.
Most HYS calc interest by Avg daily balance and credit it at the end of the month, if you close your account you forfeit that month’s interest.
I’ve gone from ING, to Emigrant, to Countrywide, and as of today to DollarSavingsDirect. CW is down to 2.9% and with BOA as the owner I doubt will ever be competitive again. DSD is 4% currently and if it holds I’ll make up the difference in under two weeks (40-50k in funds).

]]> By: Madison http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6573 Madison Fri, 14 Nov 2008 14:57:05 +0000 http://www.mydollarplan.com/?p=568#comment-6573 @ unimax: I haven't, but I'll put it on my list. Do you have an account there? @ Howard: Now you got me thinking! I wonder if we could pinpoint the bank that always has the highest rate on average? It would probably take a lot of data points, and some research to locate all the rates, but it would be very valuable information to know. Great point on the layover period. Some of the banks are horrible and take forever. @ unimax: I haven’t, but I’ll put it on my list. Do you have an account there?

@ Howard: Now you got me thinking! I wonder if we could pinpoint the bank that always has the highest rate on average? It would probably take a lot of data points, and some research to locate all the rates, but it would be very valuable information to know.

Great point on the layover period. Some of the banks are horrible and take forever.

]]> By: Howard http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6571 Howard Fri, 14 Nov 2008 14:45:24 +0000 http://www.mydollarplan.com/?p=568#comment-6571 I think if possible it would be good to look at the historic rates as well. If I'm in ING and jump to FNBO for half a point, but 2 months later ING surpases FNBO, maybe it wasn't worth the hassle. I think it would be worth looking into if FNBO is consistently ahead of ING. Another thing to consider when rate chasing is the layover period your money is earning zero interest while transferring funds. On 100K, which would be a signficant amount for most people, if there was a week (I'm not sure the exact # of days) where your money wouldn't be earning anything due to an HSBC transfer, you'd be giving up almost $53 off the bat to chase a .25% increase that would yield you about an extra $250 over 12 months (assuming HSBC consistently stays 1/4 point ahead of ING). HSBC would need to stay at least 1/4 point ahead of ING for about 77 days to break even on the transfer. I guess if you have the time and patience it's worth the chase. But I'd think you'd need significant $s to move around and probably would want at least a half-point gain. I think if possible it would be good to look at the historic rates as well. If I’m in ING and jump to FNBO for half a point, but 2 months later ING surpases FNBO, maybe it wasn’t worth the hassle. I think it would be worth looking into if FNBO is consistently ahead of ING.

Another thing to consider when rate chasing is the layover period your money is earning zero interest while transferring funds. On 100K, which would be a signficant amount for most people, if there was a week (I’m not sure the exact # of days) where your money wouldn’t be earning anything due to an HSBC transfer, you’d be giving up almost $53 off the bat to chase a .25% increase that would yield you about an extra $250 over 12 months (assuming HSBC consistently stays 1/4 point ahead of ING). HSBC would need to stay at least 1/4 point ahead of ING for about 77 days to break even on the transfer.

I guess if you have the time and patience it’s worth the chase. But I’d think you’d need significant $s to move around and probably would want at least a half-point gain.

]]> By: unimax http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6528 unimax Fri, 14 Nov 2008 02:53:05 +0000 http://www.mydollarplan.com/?p=568#comment-6528 have you looked at dollarsavingsdirect.com? have you looked at dollarsavingsdirect.com?

]]> By: Madison http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6503 Madison Thu, 13 Nov 2008 20:00:53 +0000 http://www.mydollarplan.com/?p=568#comment-6503 @ Andrew: Thanks for the tip... off to check them out! @ Jon: Very good point. It's hard to compare the promotional rates that the banks use. I think that if you use APY they should all be on a level playing field (if there are any bank experts out there, let us know for sure!). @ Andrew: Thanks for the tip… off to check them out!

@ Jon: Very good point. It’s hard to compare the promotional rates that the banks use. I think that if you use APY they should all be on a level playing field (if there are any bank experts out there, let us know for sure!).

]]> By: Jon http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6488 Jon Thu, 13 Nov 2008 18:09:49 +0000 http://www.mydollarplan.com/?p=568#comment-6488 I always wonder how each bank's interest is calculated. It's not easy to find out how from their websites. Some seem to require the money to be in for an entire interest period (e.g., month) to get paid, others use an average daily balance method, etc. Rate chasing for a quarter point wouldn't seem to be profitable even with large sums if the interest calculation method screws you over. I always wonder how each bank’s interest is calculated. It’s not easy to find out how from their websites. Some seem to require the money to be in for an entire interest period (e.g., month) to get paid, others use an average daily balance method, etc. Rate chasing for a quarter point wouldn’t seem to be profitable even with large sums if the interest calculation method screws you over.

]]> By: Andrew http://www.mydollarplan.com/rate-chasing-with-high-yield-savings-accounts/#comment-6487 Andrew Thu, 13 Nov 2008 17:01:32 +0000 http://www.mydollarplan.com/?p=568#comment-6487 You should look into GMAC Bank. 3.75% currently. You should look into GMAC Bank. 3.75% currently.

]]>