I have a money market account, which is supposed to earn more than a regular savings account. What is going on here?
2007-05-03 13:41:35 · 9 answers · asked by zooper 2 in Business & Finance ➔ Investing
Because interest rates are horrible right now. I have found that there are a few national chain banks offering savings account with high interest rates. I got an express savings account through H&R Block bank. It is earning 5.25% interest right now. There is no minimum balance required. They even send you an ATM card to use if you need money quickly. Of course since there aren't H&R Block banks nationally yet, you would have to use a foreign bank and therefore incur a couple dollar charge each time. But, if you are like me and don't use the ATM card at all, it really is an awesome deal. You can make deposits by mailing them checks or transferring money from another bank account. They send you monthly statements and you can even set it up to have monthly withdrawals from another bank account. You can get more information at H&R Block or go to the website at www.hrblockbank.com. I've also seen where HSBC bank is offering a savings with a 5.15% interest rate.
2007-05-03 13:54:39 · answer #1 · answered by Fool in the Rain 6 · 1⤊ 1⤋
because the banks you see have expenses to pay and all they care about is profit. Online banks (ING and Emigrantdirect are two) do not have brick and mortar banks so they pass the cost savings to you. I only have a checking account with my real bank and i put x amount in every week in my online bank and make money that way. Banks do not have good money market rates.
2007-05-03 13:54:39 · answer #2 · answered by Anonymous · 0⤊ 1⤋
You need to switch bank! Go to this blog and learn more about saving accounts at http://chi-style.blogspot.com/
FNBO Direct is offering 6% APY (Probably the highest)
No Minimums,No Fees, and FDIC Insured.
https://www.fnbodirect.com/
Sign up and start earning dividends!
2007-05-03 17:28:58 · answer #3 · answered by Young and Famous 3 · 0⤊ 1⤋
Banks like to screw everyday people who don't understand that there are a ton of savings accounts that offer interest rates higher than 4%. Go to bankrate.com to compare some possibilities. I recommend emigrantdirect since I have had experience with them without any problems.
2007-05-03 13:59:03 · answer #4 · answered by Andy 3 · 0⤊ 2⤋
Honestly saving accounts from your local bank are not worth having, they pay very little compared to saving accounts online. ING Direct and Emigrant Direct pay good interest rates.
2007-05-03 16:07:50 · answer #5 · answered by Steve 4 · 1⤊ 2⤋
You'll need to check your statement closely, that may be the average daily/weekly/monthly return. If you're to earn 5% per year, you need to divide that by 12 to determine the monthly rate of return, .05 / 12 = .004 OR .4% each month.
But if you're at .3 that may mean your earning less than 5% per year, check paypal, their money markets pay 5.02% (per year).
2007-05-03 14:07:08 · answer #6 · answered by Anonymous · 1⤊ 1⤋
Switch banks.
I personally use Washington Mutual and they offer more than .30% !!
I get at least 5% on regular online savings accounts.
http://www.wamu.com
You don't even have to leave your home to open it. It takes about 7 minutes to open online.
2007-05-03 13:58:37 · answer #7 · answered by Geeeyaaa 4 · 0⤊ 2⤋
Maybe the fund expenses are eating it up.
Banks don't have a great reputation for good interest rates.
.
2007-05-03 13:45:06 · answer #8 · answered by Robert L 7 · 0⤊ 2⤋
because you're not using ING!
2007-05-03 14:14:47 · answer #9 · answered by imaquitter 3 · 0⤊ 2⤋