Tuesday, July 17, 2007
Good places to stash micro-savings
Okay, so you know I've open two savings accounts with basically no money in them at this point. I researched a lot of places before I made my final decisions. (No, I'm not going to tell you what my final decision is for privacy sake and because I haven't used them long enough to give you a good recommendation).
But this is the information I gathered in case you too wish to open a micro-savings account yourself.
The places that have good savings accounts that allow you to open an account with less than $50 bucks . . .
UFB Direct -- 5.31%
iGoBanking -- 5.3%
HSBC Direct -- 5.05%
Emigrant Direct.com -- 5.05%
E-Trade -- 5.05%
ING Direct 4.50%
Assess them for yourselves:
1. Make sure the rate they give you is not an introductory rate. A bank called FNBO is giving an introductory rate of 6% only until September 28th.
2. Make sure there is not a requirement to put a larger sum in later (in 3 months, or 6 months or 1 year). The bank WT Direct gives a 5.25% interest rate for the first 60 days the account is open and .60 after that unless you deposit $10,000 or more.
3. Find out how often the interest is compounded (daily, monthly, quarterly or yearly) -- it matters, believe me. Don't believe me? Click here.
4. Find out how often the interest is actually put into your account (daily, monthly, quarterly, yearly) -- this really matters.
*Be careful of brokerage/trade accounts because they give a better yield but they are not FDIC insured.
Articles on this topic that I found utterly helpful:
Which High Yield Account is Best
from "Get Rich Slowly"
Accounts for Canadians
I used these websites to help me find this information:
Savings, wealth, small cash, keeping your money, savings accounts,