In an old-fashioned run on the bank, depositors would actually run away from the bank. Yet, in this new-fangled world of online savings accounts, bailouts and fast money, depositors have reason to go back.
Despite rate cuts, E-Trade has kept the rate on its Complete Savings Account at 4.10% and is handing out $25 bills. Fresh off a management change and a $2.5 billion private equity investment to stem losses from bad loans, E-Trade needs to drum up some new depositors and fast.
Money earn
ing more money – it’s a wonderful thing.
As regular FiLife readers may know, my husband and I are looking to buy our first apartment. Our down payment resides in a Citibank e-Savings account, which currently yields 4.0%. We’ve saved a respectable sum, and I get a sense of satisfaction watching it grow without having to do anything at all.
But the last time I checked the balance - and I do this often - I started thinking: Can I do better?
So I came up with an idea. If I was a bank product manager for a day, I’d create something tailor-made for first-time homebuyers: an account specifically earmarked for down payment savings that offers one percentage point more in interest than the highest-yielding online savings account already in the market. (more…)
anking: Christmas club savings accounts.
These accounts – which were pioneered during the Depression – help people save for a large expense, namely, holiday shopping. Each week or month, a fixed amount of money is deducted from your checking account and deposited in your Christmas club savings account. Over the course of the year, the balance grows, and, come October or November, the balance is transferred back into your checking account for holiday spending.
Sounds like a great way to save for gift shopping – and to avoid credit-card debt – right?
Well, not exactly. (more…)
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