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Bank Savings Account Interest Rate
Want Your Savings to Earn a Higher Rate of Return? Try Internet Banking
By Jon Galanty
Doesn't it seem like the only impressive numbers we've seen this summer
are the digits on the thermostat and the unaffordable prices of
homes? Real estate has been excruciatingly hot for the past few
years, but getting in the market now puts you in the high-risk
category for a heat stroke if the market decides to cool off this
year.
So if a real estate induced stroke doesn't appeal to you and the
stock market's roller coaster ride gives you motion sickness, it's
very likely that you as a health-conscious investor are sitting on a
stash of cash collecting an anemic rate of interest.
Don't worry, you are in good company. Even investment legend Warren
Buffet is having problems finding fruitful investments. Buffet
admitted in Berkshire Hathaway's annual letter to shareholders to
having ended 2004 with $43 billion in cash equivalents and couldn't
promise much success in utilizing the money in 2005.
If Buffet doesn't know what to do with his billions, you are
probably thinking that you have no chance of finding a great place
to put your billions either. Ok, your trillions. I didn't mean to
belittle your nest egg.
Where can you stick your cash while you wait for better investment
times?
How about online? Yes, I know Internet stocks stole your money in
2000, but Internet banks are giving it back in 2005.
Unlike the Internet gold rush of the 1990's where web businesses
were run by high school students, many of today's Internet banks are
simply online divisions of safe and time tested brick-and-mortar
banking institutions.
Take ING Direct for example. ING Direct is the online division of
ING Group, a Dutch based financial institution which is among the
top 15 largest in the world. ING Direct opened its Internet doors
five years ago and currently has approximately $29 billion in
deposits. That would make it the "YAHOO!" of online banks.
But another online bank may actually make you yodel, "yahooo" after
you glance at their annual percentage yield. Internet bank Emigrant
Direct offers 3.50% APY on its savings accounts. What does your big
commercial bank give you? 0.50%? At that rate, you're not earning
enough to beat inflation. Maybe it's time you joined the Internet
age?
Emigrant Direct is the online division for New York's Emigrant
Savings Bank. Although a relative newcomer to the online banking
scene, when it seems like interest rates are leaden with lead,
Emigrant Direct is usually the first to raise them. At this point,
brick-and-mortar banks would need to raise their rates quite a bit
just to catch up with Emigrant.
So if you find yourself not enjoying the lazy interest rates of
summer, you may want to log on to the net and see how an Internet
bank account may boost your return this year. The interest rate you
get may just burn as hot as the heat wave hitting most of America.
About the Author
Jon Galanty is a financial writer for eMoneyCentral.com. Visit
http://www.emoneycentral.com
to find out more about online banking and to get other great money
tips.
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