Source: Informa Research Services
(02-17-2010)
A tax refund, a savings account you forgot about, or maybe a really big change jar you’ve finally decided to count. Wherever it comes from, $5,000 is a great amount to help revive your nest egg or savings habit. But where is that money going to do the best?
When it comes to savings products, there is no need to settle for average. For instance, Provident Credit Union in California offers 1.59% annual percent yield (APY) on their money market account with a minimum deposit of just $1, and direct deposit or automatic deposit at least once during the term of the account. Their offered interest rate is more than triple the current national average APY on a money market account (at $10,000) which currently stands at just 0.45% (Source: Informa Research Services’ Interest Rate Review).
Similarly, Ally Bank offers an impressive 1.45% APY on their money market account (also with a minimum deposit of $1). Furthermore, Ally Bank is an internet bank, so for those who enjoy banking and managing their money online, this may be a good choice.
Ally Bank also offers a 6-month certificate of deposit earning 1.24% APY. This may be a good choice for those who want to lock their funds into a short term CD to lessen the temptation to withdraw and spend the funds. Short-term CDs are good choices for low rate environments because you want your funds to be easily accessible (without penalty) so that you can move it to a higher earning account if rates begin to rise.
Be sure to shop for the best rate using online rate comparison tables. Read the details about your account to ensure you are able to fulfill the requirements necessary to earn the advertised APY.
Five Ways to Make Your Tax Refund Work for You
Homebuyer Tax Credits Available on Purchases Through April
Do Yourself a Huge Favor: Save 10%
How Much Money Will You Need to Retire?
|
