If you’re the type to chase high interest savings rates, the first quarter of 2009 has kept you busy.
Nearly all of the major internet banks have slashed their savings account interest rates on a near biweekly basis.
Being somewhat of a rate chaser myself, I noticed all three of my older savings accounts have been substantially reduced.
Case in point, my savings account at Dollar Savings Direct. Just 3 months ago, their savings account was ranked as one of the nation’s highest yielding savings accounts at 3.5% APY.
Now, it’s a paltry 2.25% APY.
Last summer, I was introduced to a website called CheckingFinder.com. This website allows you to find the highest paying checking accounts in the U.S.
Some of these banks pay as much as double the amount of interest than most major online banks.
Don’t believe me? See for yourself.
Honestly, there isn’t a catch as long as you use actually use your bank account and debit card.
Here are the three requirements you must follow each month:
That’s basically it. As long as you swipe your debit card 12 times (or less) each month and you setup an automatic payment for one of your regular bills each month, you’re golden.
Considering that most people use a debit card or credit card for most of their daily transactions, it’s a very easy way to earn a very generous interest rate.
The only real drawback is that these accounts have capped interest rate payouts at $25,000. You can have more than $25k in your account, but you only receive the high interest rate payouts up to the $25,000 cap.
Then again, if you have more than $25,000 in cash and want to earn as much interest as possible, just open an additional account with another bank on the list. Using a debit card for 20+ transactions per month might be a challenge, but I’m pretty sure a motivated saver can come up with some way of making one or more debit card transactions per day. Like filling up your gas tank three times a week or stopping at the grocery store multiple times a week.
If you can find a higher interest rate that’s FDIC insured and provides the liquidity of a regular checking account, I would love to hear about it because I don’t think you’re going to find such attractive rates anywhere else.
Photo by Neil T