need help starting a savings account.?

Question

Hi,
I just started work (college grad) and I need suggestions for starting a savings account.
I saw HSBC offeres an online account with 4.8% interest. Are there other online savings which offer more? Is there any reasons I wouldnt want to use this as opposed to a regular savings account? Any other advice?

thanks

Answer 1

You should open a credit union share draft savings account. Credit unions are non-profit so you will get the maximum return on your investment, the bank will not be pulling profit out of the system.

Also people with credit union accounts are actually lending money to people who take out mortgages and loans and credit cards and even payday loans from the credit union, which is quite lucrative! All that plus a profit-neutral middleman. It's the best place to keep your savings. It's where I keep mine.

Finally, credit union accounts and contracts have more favorable legal terms than commercial banks. For example most banks require that you sign a "liability waiver" or "binding pre-dispute arbitration clause" which basically means that if they do illegal things to you or your money, then you can't take them to court or they can counter-sue you for millions. Credit unions usually don't do that sort of nasty thing.

Answer 2

Don't listen to the trolls above. The answer to your question is yes -- look into Citibank e-Savings account, which pays 5% right now.

HSBCDirect and EmigrantDirect come in second at 4.8%. Since you probably don't have that much money yet, the difference is not as important as convenience for you. Or you can open an account at all three.

These accounts will likely pay a lot more in interest than a local bank, and will have lower requirements. The only limitation is that you can't get the money out right away, it might take 1 or 2 business days to transfer them to your checking account.

Other advise? Depending on how much you make and where you live, Treasury Bills may be a better place for your extra cash.

Since I posted this, HSBC upped the ante to 5.05%.

Answer 3

There are a couple of altenatives, but they do not allow for quick access to your money, so these would be savings and not a place to put money for a week or two.

one of course is a cd. 3,6,9 or 12 month pay about 5% - 5.5% depending on the time you pick.

But the most interesting is a bank called www.everbank.com. It is FDIC insured (this will not pay for an investment loss). This is a place you can actually put your money in a savings account but to do so as a foreign currency. So there will be interest, but also currency fluctuation can add (or subtract) from your balance. Being a college grad you need to do some research before you pick a currency, but it is also a way of venturing into the world of investing while saving

It is certainly worth checking out. But remember, in any investing... give it the necessaray due dilligence... do your homework...

Answer 4

hey - i have seen hsbc also - i have not been able to come accross a better deal - the catch is, it is an online savings account. if you plan to get the money fast it will take you a few business days to receive (either by mail or automatic transfer to your local bank account). another thing is you need to send the money by mail, in most cases. but if you can deal with that - it is a good deal.

Answer 5

Just go to a bank near you and check out who is best. Most banks will let you start with as little as $100.00. The bank you choose should offer you on line banking as well. I would not do anything on line unless it was through a bank.

Answer 6

theres Also ING Direct which is offering 4.25% APY and if u open an account with $250.00 they will give u a free $25.00 in intrest i can send u the link just email me @ [e-mail]