a question about the interest in my saving account?

Question

I have about 10k in the saving account, but the interest is too low, Annual Percentage Yield: 0.2500 . I wonder if this is normal, or there is other way to invest. Thanks a lot

I know CD has a higher interest. but I am now sure that I will or not use my money. so if the rate 0.25% is normal in saving account? if there is other possible bank provide a higher rate in saving account?

Thanks a lot :)

I checked the online banks but I am really afraid of the security problems, And My question is the localbank's interest rate 0,25% is normal? Thanks a lot :P

Answer 1

CD rates are pretty good right now, near 5%, I'd suggest looking into one of those, the only catch is that your money won't be accessible for a year or more, depending on how long you get it with stiff penalties for pulling out early, but the payout is pretty nice.

Talk to someone at your local bank to see your options.

Answer 2

I agree with the previous answers, call local banks see what the current rate is as well as any stipulations. Such as minimum balances, fees and withdrawal regulations. You could consider putting only part of the money into a savings account and the other in to a higher yield CD most CD are for at least 6 months and require a 1000 deposit. Just so that you know the reason the interest rate on your savings account changes is due to the Federal Reserve changing it's interest rate. So as the Fed moves rates up to fight inflation of the growing economy, the rate paid on savings accounts increases. However, the rate a person pays to borrow money increases as well.

Answer 3

Here is a comparison of savings account rates
http://www.lockheedfcu.org/Rates/Compare_Savings/

http://www.eloan.com/s/show/landingpage/savings/savings01?user=ysc&mcode=ysckwslu7&OVRAW=savings%20account%20rate&OVKEY=savings%20account%20rate&OVMTC=standard

If you can trust a bank with your money in a savings account, you can trust a bank with your money in a CD or other higher interest earning money market asset.

A savings certificate (CD - Certificate of Deposit) simply entitles the bearer to receive interest and sets up specific terms in a contract.

Here's the definition:
A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.


A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing funds on demand. Although it is still possible to withdraw the money, this action will often incur a penalty.

For example, let's say that you purchase a $10,000 CD with an interest rate of 5% compounded annually and a term of one year. At year's end, the CD will have grown to $10,500 ($10,000 * 1.05).

CDs of less than $100,000 are called "small CDs"; CDs for more than $100,000 are called "large CDs" or "jumbo CDs". Almost all large CDs, as well as some small CDs, are negotiable.

Answer 4

I think that you should start off by paying yourself first. Try researching some credit unions around your town, for they always provide outstanding rates. If I was you, I would move 5K to a 12 month CD, and the resting monies would stay in a conventional savings account for emergency liquid funds.

Answer 5

buy 3 cd of 3000 each, purchase a 3 month a six month and a one year cd all of these options pay higher than what you are getting now.When the 3 month matures and you don't need the money then purchase a new one year cd at that time and repeat proces as each one matures.This way you will always have money coming due without long waiting periods.

Answer 6

shop around
several online banks offer savings account and/or money market accounts that are earning more than 4% (some 5%).