I remember back when I had an average bank balance of $4.13. I had a savings account that paid a whopping 0.25% interest.
I would be paid something like $0.02 in interest per year, but get charged $5 per month for being under the "minimum balance" they had established.
What a lousy deal! It was a lousy deal when I had $4.13 in the bank, and it was a HORRIBLE deal when I had way more than $4.13 in the bank.
That is why I am such a big fan of on-line savings accounts - especially my ING Direct on-line savings account.
ING has no minimum balance requirement, charges no fees, has outstanding customer service, is FDIC-insured, and is currently paying 4.2% interest on their
For money that I am not going to need for at least five years, I invest in mutual funds.
For money that I will need in the next five years, I carry in an interest-bearing savings account that pays great interest!
Let me ask you the question again. How much interest are you getting paid?
November 16th, 2007 at 04:14 am 1195186463
If you have a strong will to not fling your money around, PayPal pays 4.75%.
November 16th, 2007 at 02:18 pm 1195222692
November 16th, 2007 at 02:32 pm 1195223537
This is just me, but I personally value access and service more than I do the interest rate for my checking, so I've left my (free) checking at a traditional brick & mortar bank.
November 17th, 2007 at 06:32 pm 1195324335
Not a fan of ING myself, but I am sure most people settle for much less. So good to remind them what is out there, indeed.