Many online savings accounts offer much better interest than the typical bank savings account

5.00% APR vs. 0.20% APR. Hmmm,… which one should I choose?

Filed Under APR |

A short while ago, a client of mine asked me if in my course of communication with mortgage and financial professionals, I had received any advice about alternatives to regular bank savings accounts. They purposely wanted to know about higher yielding savings accounts, because while not immune to risk, these accounts are on the safer side, relatively speaking.Let me say first that I am in the business of real estate, so I won’t instruct you on areas outside my field of expertise. Nonetheless, I did a little research and asking around so that I could answer my client, and I found that online savings accounts offering in the area of 4-5% rates are much more easily found now than a few years ago.

This sight caught my attention. You will see a list of banks and financial institutions, their offered rate, minimum deposit, and user comments. Be aware that these user comments are by no means proofs of account stability or lack thereof, they are merely statements of a few peoples experiences with the account. You should ask your financial advisor for a professional opinion.

A few of these banks show impressive rates over 5%. You’ll also notice some credible names there, so you can be assured that your not giving your money to some unknown entitiy. I won’t tell you what I counseled my client, but I do encourage you to look into some of your options if you are interested in a fairly conservative alternative to your banks savings account which probably pays next to nothing in interest. And again, be sure to consult your advisor before moving your money around.

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