Bank Interest in the USA or Chicago, IL?

Question

I wanted to open a saving and checking bank account in a bank which gives me maximum interest rate. I am in Chicago. Is this possible to use other US banks which gives online good interest or Do i need to choose a Bank in Chicago? How long and how would i save more money if I choose other good banks beside Chicago.

Answer 1

Certain laws are federal, and other laws are with the realm of the state. For example, driving laws are state laws. Banking laws are also state laws.

It would be tempting to shop around banks and be able to pick whatever bank you wanted. However, that bank would be governed by the laws of the state it is in, and not your state. Your state doesn't like that. Typically there are barriers that make it a little difficult, if not impossible, to bank out of state.

So, any bank in Illinois is fair game. You could look into banking at some other bank in some other state, but that may not be possible.

Answer 2

Citibank has a nice deal where you have a checking account with no interest that is hooked up to a money market account. As long as you make 2 on-line bill pays each month, you get a great rate on your money market account. Its called the Ultimate Money Account.
I liked the idea of the "keep the change" account from Bank of America, but I was almost insulted when I read their saving interest rate was .5%. I said forget it, they can keep the change!
You do not need a bank in Chicago. I know some people that use American Bank, which is an on-line bank, I think in Pennsylvania.
Suze Orman has a great deal with Ameritrade called a Save Yourself plan. This is a savings account (Money Market), but you can earn $100.00 bonus after one year of monthly electronic deposits in the amount of $50.00 or more. You need the code from her book, Women and Money (701).
Rates are dropping, so you might want to look into something more secure, like a CD, if you don't need the money soon.

Answer 3

Bank interest is always low. If you have the money go to a money market account. The average savings account interest rate is 0.5%. In my money market account, I'm getting closer to 5%. You should open a checking account, and try and keep a low balance, and use a money market account for savings and high balance checks.