Given the best investment rates for savings accounts, with lows in the last two years, keep your cash has become a bad investment.
After all, today the average interest rate paid by US banks is only 0.17%, the rate of money market funds is 0.01%, and even certificates of deposit to one year paid only 0.44 %, so that in a year you will achieve earn just 50 cents for every $ 100 you invest. And that calculation is before taxes, and even talks about inflation.
True, some banks offer tempting rates and other gimmicks to attract savers, but these offers rarely deliver better long-term returns.
But where can you get better returns on your savings without risking capital or access to your money? These four options meet these requirements:
High Performance Checking
How to find them. Search sites where accounts report what better performing nationally and by state; then contact the bank to verify if the rate is still valid and available.
Restrictions. Most banks set limits on the amount of funds they can get the highest rate; $ 25.000 is the most common stop. The rates offered higher yields (up to 4%, commonly available only in local banks) have narrower limits (about $ 10,000).
The best recent deal. An interest rate of 2.25% in the Bank of Fayetteville. Although rates of ’online banking’ or the Internet have fallen in the last year to settle at average 1%, even rivaling those certificates of deposit to four years (offering a rate of 1.24%). But unlike the certificates, you can withdraw money at any time without penalty.
Savings accounts ’online’
How to find them. Search on ’America’s Best Rates’ to find banks that offer higher returns.
Restrictions. You are usually limited to six transactions per billing cycle.
The best recent deal. 1.16% on the website of Discover Bank.
It is expected that short-term rates increase to 1.5 percentage points by the end of 2012, so you will not want to compromise your money for several years just to get a decent performance today, especially since many banks (including Bank of America and Citizens Bank ) have significantly increased their penalties for early withdrawal.