Tuesday, June 10, 2008

Still Chasing the Rate (but is it worth the chase?)

Those few of you who have been following my blog for a while know that I actively seek high-rate, safe, online bank accounts in which to park my little nest egg. Why shouldn't my money earn a little money? Last year I made several thousand (sadly taxable) dollars in interest actively moving my money around various online bank accounts, starting with Etrade's 5.15% (now paying 3.15%) savings account, then moving to FNBO Direct's 6% account (now paying 3.5%) , then to Everbanks 3 month intro 6.01% account (now paying a 4.01% intro rate, which I can no longer qualify for, having already held an account, and 3.06% non-intro rate).

Once the Fed started dropping the Prime Rate like a stone (thank you very much, irresponsible mortgage buyers), those fabulous online bank rates started dropping as well. I currently have the nest egg parked at Countrywide, which is giving me 3.75% (for a $10,000 minimum). Not great considering the inflation rate (~4%) and the fact that the interest is taxable...depressing actually, but I don't see anything too much better out there. There is a site called Bankrate.com that chases these online rates, but it doesn't always report the highest rate available. Indymac is offering 3.85% for it's $10,000 plus online accounts, and I was debating whether it was worthwhile for me to jump over to them just for 0.1% difference. I used My Money Blog's handy-dandy Ultimate Interest Rate Chaser Calculator, and figured out that for every $10,000 I move over, I'll only make $10 more a year in interest. Nah, not worth the jump.

Any other online banking deals out there? Either post it to comments or write me at theroadtaken613@gmail.com.

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