When will people who SAVE money start to see a higher rate of return ...?

Question

We are lucky to get 1.5% return. Who is making the money here? Why bother saving with rates of return like that?

Answer 1

Savings accounts with banks do not usually pay high rates of return because they are so easy to move money in and out of. Money market funds or CDs (certificates of deposit) have higher rates of return but are harder to move money out of.

Local credit unions also have better returns on savings accounts but usually you have more fees for ATMs and such.

Your best bet is to look online for the best deal. ING Direct has a couple pretty good options for savings accounts, MMs, and CDs that are much better than you could get with a bank. Wherever you go, you should be able to find a rate of 4% or better. You just need to keep open a separate account.

Answer 2

1.5%??? You're obviously not saving with ING Direct! Their regular no-fee savings account is at 4.5%. And if you're really looking for a return on your money, you should start an investment portfolio instead of just using a straight savings account.

Answer 3

First off.... many of us would never settle for a savings rate like that. We get 3.41% APY on our checking.

Two great FDIC Insured banks for savings are;
www.GMACBank.com (5.30% APY)
www.INGDirect.com

Our FDIC insured checking account is;
www.EverBank.com

#2
Hopefully rates will go lower. This would mean inflation is not killing the "value" of our money. Secondly it would hopefully have a positive impact on our 401K's, IRA's and other stocks (or stock mutual funds) that will help us live well when we retire.

Answer 4

What country are you in? Here in England you could get 6%, no sweat!

Answer 5

I get 5.34% from Amtrust direct.

ing is good
also emmigrentdirect, hsbc