HOT MAMA! Where To Put Your Money If It's Just Sitting In a Checking Account

[Skiguy411]

Has anyone done the umbrellabank one? I applied and it said it needed more information (Social Security card copy, drivers license, and 2 utility bills). I faxed that over on saturday and haven't heard a thing.

 

[GeneValgene]

Originally posted by: Topplayer
1 Year - UmbrellaBank.com 5.25% ( minimum of $1k ) FTW

dayum...what's the difference between the umbrella money market, and the other high yield savings accounts like ing and hsbc?

 

[LordSnailz]

Any bonuses with starting a citibank savings?

 

[creedog]

Wow these rates look great. However I called both Ing and Emigrant and both stated that they will only link to personal checking accounts. Well, since I am the trustee for a trust in my grandparents name I need to be able to link to the trust account which is a money market account.

Now, I always could have a checking account created that links to this money market account, but it still would not be a personal checking account as it would be in the name of the trust.

Anyone know who will do this for me or have any sugguestions on how I can take advantage of these rates?

Note that the money market account will be with Bank of America and must stay with them. Thanks

 

[Phlargo]

great post.. thanks OP

 

[JimKiler]

USAToday list of bank rates as of 04.19.06

in case anyone wants more options.

 

[Mani]

Awesome post, thanks.

 

[LeArN2LiVe]

How does this work exactly? If I deposit $1K for 1 year at 5.00%, I get 1050 after a year?

 

[BlackPear1]

No, you'll get more thanks to compound interest. How much more depends on interest rate and compounding interval.

 

[LeArN2LiVe]

Oh wow, could you elaborate? I have $1,000 sitting in my checking account that I never use. Should I go for a CD? How much can I expect to make with the bank with the highest interest and the most compound interest? This is for college.

 

[Engineer]

Originally posted by: BlackPear1
No, you'll get more thanks to compound interest. How much more depends on interest rate and compounding interval.

Well, that depends whether it's quoted in APR (Annual Percentage Rate) or APY (Annual Percentage Yield).

If it's APR, it's the rate and could be compounded. If it's APY, then it's already factoring in the compounding of APR and you would indeed get exactly the APY * investment for that period (example: APY of 5% on 1,000 for a year would yield $1,050.)

APR is less than APY.

Information here.

Most online banks quote in APY (have a lower APR). If you have 4.5% and invest 1,000 at HSBC, you will have 1,045 at the end of the year.

 

[Engineer]

Update:

ING up to 4.15% savings
HSBC direct at 4.5% savings

CD's:

ING:

6 month: 4.75%
9 month: 5.00%
12 month: 5.25%

NO minimums!

 

[Davegod75]

http://www.presidential.com/

 

[Engineer]

$0 - 499.99
4.54% 4.65%

$500 - 4999.99
4.64% 4.75%

$5000 or more
4.64% 4.75%

CD's:

$500 - 4999.99
3 months 4.74% 4.85%
6 months 4.97% 5.10%
9 months 5.02% 5.15%
12 months 5.16% 5.30%
18 months 5.16% 5.30%
2 years 5.16% 5.30%
3 years 5.16% 5.30%
4 years 5.16% 5.30%
5 years 5.16% 5.30%
$5000 or more
3 months 4.74% 4.85%
6 months 4.97% 5.10%
9 months 5.02% 5.15%
12 months 5.16% 5.30%
18 months 5.16% 5.30%
2 years 5.16% 5.30%
3 years 5.16% 5.30%
4 years 5.16% 5.30%
5 years 5.16% 5.30%

GMAC bank.

 

[Engineer]

Another possibility is Treasury bills from Treasurydirect.com. Current 6 month bills are at an APR of 4.966 (approaching 5 fast) with "STATE TAX FREE" yields equivalent up to 5.75% (if you're in a high tax bracket and live in California for instance). Even short term (4 week) bills have APY's (adjusted for state taxes) of over 5.18% (and maybe more depending on your federal tax bracket).

My 6 month bill is getting 5.36% and my 4 week bills are at 5.18% APY (adjusted to equivalent CD/bank yields considering KY 6% income tax free).

To figure your equivalent bank/CD "rate":

Bank_rate = Treasury_rate * (1 - Federal tax rate) / ( 1 - Federal tax rate - State tax rate).

If you itemize your dedutions on federal taxes, the formula is as follows:

Bank_rate = Treasury rate / (1 - State rate)

To determine the yield, plug in the calculated rate into the following formula

Yield = ((1 + (rate / periods)) ^ periods) - 1
where "periods = 365 / time length of treasury"

Good luck and YMMV on rates as they are determined by auctions.

 

[mahjk]

I have a Capital One High Yield Money Market account currently at 4.55%. It works like a savings account like ING etc where you link to an existing bank account and do ACH pulls/pushs. Its one of the highest rates ofr savings around that is liquid, no min balance and FDIC insured .

 

[Cattlegod]

go to ford credit
http://www.fordcredit.com/interestadvantage/index.jhtml

they are giving 5.4% right now. it isn't FDIC insured, but like they are going to go bankrupt anytime soon.

 

[Taggart]

Originally posted by: Cattlegod
go to ford credit
http://www.fordcredit.com/interestadvantage/index.jhtml

they are giving 5.4% right now. it isn't FDIC insured, but like they are going to go bankrupt anytime soon.

whoa nice find

 

[goofy4ever]

Originally posted by: Cattlegod
go to ford credit
http://www.fordcredit.com/interestadvantage/index.jhtml

they are giving 5.4% right now. it isn't FDIC insured, but like they are going to go bankrupt anytime soon.

Umm, have you check their stock price lately? The only reason Ford is not in bankruptcy is that Ford family owns a rather large chunk of the company via company stock and they don't want to lose it.

I do not wish anything bad for Ford but if anything bad were to happen, you would be screwed; if you are thinking about parking a large amount of money, the spread between Ford and FDIC insured Emigrant (or even Amboy) is not worth the risk.

my 2 cents

 

[astrocase]

Holy crap that's a nice find! Why isn't it ensured though?

 

[Kenji4861]

ok.. updated.. rates got a bit better

 

[Golgatha]

PayPal Money Market varies from 4.5-5%. That's where my money got transferred to from my original Savings account.

 

[PHiuR]

so if someone has a million dollars...he could make $100,000 in 1 year from the 6month CDs?

 

[Taggart]

Originally posted by: PHiuR
so if someone has a million dollars...he could make $100,000 in 1 year from the 6month CDs?

No, the rate on the 6 month CD is APY, so the rate given is for a year of interest. On $1 million you would get $50,000 with a 5% APY.

 

[Chris2wire]

I see emmigrant direct compounds daily and pays monthly, does anyone know about the others but more specifically hsbc?