What is a savings Account with good interest rate?

My savings account interest rate has gone down considerably to about 3.6 and was wondering what are some good accounts. Looking for one close to around 5% interest.

This is a great question! Especially now that it's tough to make decisions on stocks.

I found that HSBC direct online tends to have very competitive rates. The rates adjust though, so there are times when Citi and ING have better rates. I recommend that you check all three websites to see which might be more competitive. There are also short term CDs that are closer to 5%, these sometimes require a minimum of 25,000.

UBS was also able to offer high rates for short term CDs, close to 6% but with a minimum of 50,000. These need to be purchased through their agents directly.

I hope that this helps!

http://home.ingdirect.com/
http://www.hsbcdirect.com/1/2/1/offer?code=PPGD900000&WT.srch=1&WT.mc_id=HBUS_PPGD900000
http://web.da-us.citibank.com/cgi-bin/citifi/scripts/prod_and_service/prod_serv_detail.jsp?BS_Id=CitiUMA&BV_UseBVCookie=yes

Try going to a credit union instead of a bank. Credit unions give better interest. They'll give higher interest on your share accounts, and lower interest on your loans. You can also try buying Certificates of Deposit if you know that you won't need the money for at least 6 months to several years.

However, interest is pretty low right now.

I would expect most (if not all) of your answers will reference this site. It is well known and reputable. You can search for brick and mortar banks in your area or simply search for the highest rate, which will include online banks.

Currently the highest rate appears to be 4.45% from Emigrant Bank.

I would however expect these rates to sink like a stone in coming days/weeks based on recent events (cutting the interest rates by 3/4% on Tues with more cuts expected).

One online (only) bank that is very large and reputable is ING. Currently their rates are 3.59%.

If you do not need this money to be liquid, consider "locking in" a rate w/ a CD, as those rates will be dropping too.

Interest rates are dropping to try get people to borrow money to stimulate the economy---don't look for the rates to go back up anytime soon....

One other thing....you mention is that your rate is 3.6%. That really isn't too bad, considering current evetns. Unless we are talking about a ton of cash, moving the money likely isn't worth the hassle. Talking in general numbers, if you have $10,000 in a savings account you would earn about $360/year. If you earn 4.6% on that same amount in the same time frame, you only earn $100 more. You will have to "plug in" your numbers to this hypothetical equation to figure out if the effort is really worth it. Also remember that you have to pay taxes on your earnings.

If you really don't need the money anytime soon, consider a CD or, better yet, a Roth IRA (if you qualify). Roth IRA's have a savings account (MMA) type option (as well as stock based investment options) that will earn you the same amount of money as a traditional savings account but the money you would earn is **TAX FREE** and you can withdrawal any prinicpal deposited without penalty prior to retirement.

Best wishes!

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