Monday, April 17, 2006

Where do you want to park your money next

The promotion period of ING has already ended. So will be that of HSBC in 13 days. Where is your next place to park your money?

As the Federal reserve keeps raising the interest rate, the rate competition between banks becomes more and more tough. It would be worthwhile to take some time to move your money around so that you could maximize your benefit.

If you are not in need of cash in a short term, you may consider lock up your money in a CD account. Bankrate publishes a list of the highly-yielding CD's. You may balance the terms and interest rate based on your own situation. Just keep in mind that you may incur a penalty if you withdraw the money before the maturity date.


Another option would be the online savings account. It offers the comparable rates with more flexible term. You can link it with your local checking account and transfer the money back and force to meet your own needs. Here is a snapshot of the current rates offered by some of the well-known online bankers.

HSBC 4.80% promotion rate up to 4/30/06
GMAC 4.70%
umbrella 4.70%
virtual bank 4.60%
Citi e-savings 4.50%
EmigrantDirect 4.50%
ING direct 4.00%
You can get a full list here

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