are ‘high yield’ savings accounts worth it?
Jim at Bargaineering had an insightful piece a few days ago: Your Best High Yield Savings Account? in which he pointed out that there’s not much difference between 1.5% and 2.05% when you think about it. We’ve had an account with HSBC for years (three, actually) and now that it’s fallen to a rate of 1.65% the incentive to invest more money in it has become much less. You could also argue – and I would – that 1.65% far exceeds the rate of return on our 0.00% checking account, so there’s no need to sneer at the rate of return, which is very competitive with the market.
It is ironic that at this moment, when all news stories seem to be indicating that Americans are returning to a culture of frugality and saving, that we have so few options for safe, healthy returns on our investments. I am sure if HSBC offered 7% returns many people – like me – would be pulling all of our money out of our brokerage accounts and stashing them there. They can’t offer rates like that, of course, but the truth is that people are anxious to save and someone will make the case to be safe enough and offer high enough returns to pull in those savers eventually.
Earn 1.65% APY* at www.hsbcdirect.com
photo credit: Unhindered by Talent
- Free Cosmetic Products As part of a class action settlement, $175 million worth...
- the great geezeo bailout! Geezeo wants to help the 50 million Americans between the...
- a portfolio for managing your financial life online Today's post is from financial expert and Credit Karma CEO...
Related Websites
- Stock Market Tips For Beginners: How To Build Investing Experience These stock investing tips focus on the successful investor’s mindset,...
- Compounding Interest I've been doing micro loans on Prosper for a few...
- How to Keep Cash Flow Coming In One of the main problems facing Americans today is a...
Comments
Site Sponsors
|
 |