Mymoneyblog.com has a handy calculator that computes how long it would take to cover lost interest if you switched from a lower interest savings to a higher savings … depending on the money-transfer time.
Although I feel it’s important to keep up with the best rates, it just doesn’t make sense if you’re transferring your money all the time.
I’ve transferred a lot of cash only once and that was from my ING to HSBC because HSBC’s rates were over 1% more…And, I also liked how HSBC offered an ATM card, have branches internationally.
When I see the new rates, I first check to see if it’s a bank that’s accessible to me, pretty large…and that it’s one I can trust. And, I’ll just start putting my new savings into the account. No transferring…just adding.
I’m happy that I have stuck with HSBC because they’ve been responsive to the frequent rate changes.
Aside from credit unions or smaller local banks, I think they have the best online savings program…
Cash distribution with banks:
Wells Fargo – primary checking
HSBC – secondary checking – $10/mo to keep it alive and safe
HSBC – main savings – short-term emergency savings (medical needs, car needs) & down payment savings
GMAC – CD ladder – long-term emergency savings (say I lose my job)
ING – $20/mo to keep it alive and investment play money
But, then again…ING does offer a $25 bonus is you open a new account and deposit $250 w/ an invitation referral.
That may not sound like much…but for some of us out there, it’s like a year’s worth of interest.
