Comments on: Why Don’t They…Offer Super High-Yield Savings Accounts for Down Payments? http://blog.filife.com/why-dont-theyoffer-super-high-yield-savings-accounts-for-down-payments/ A production of FiLife, a new personal-finance site that goes live later this year. Tue, 07 Oct 2008 18:22:52 +0000 http://wordpress.org/?v=2.6.2 By: steve Heideman http://blog.filife.com/why-dont-theyoffer-super-high-yield-savings-accounts-for-down-payments/#comment-420 steve Heideman Fri, 14 Dec 2007 22:40:20 +0000 http://www.filife.com/why-dont-theyoffer-super-high-yield-savings-accounts-for-down-payments/#comment-420 Tara, In a normal yield curve, a CD laddering strategy could help you maximize your yield as well. I thought I would do some quick checking for you, and it doesn't seem that this techique will work so well in the current macroeconomic environment. I was only able to increase your yield $236 over 5 years--the opportunity cost over that period is just too high. I did see that Countrywide was paying 5.3% on a $10,000 minimum for their Savings Link account. I don't know what the red tape is, but that is a pretty good APY. What ever happened to the State Bank of Toledo 6.01% APY on their Hometown Checking?? ;) Tara,
In a normal yield curve, a CD laddering strategy could help you maximize your yield as well. I thought I would do some quick checking for you, and it doesn’t seem that this techique will work so well in the current macroeconomic environment. I was only able to increase your yield $236 over 5 years–the opportunity cost over that period is just too high. I did see that Countrywide was paying 5.3% on a $10,000 minimum for their Savings Link account. I don’t know what the red tape is, but that is a pretty good APY. What ever happened to the State Bank of Toledo 6.01% APY on their Hometown Checking?? ;)

]]> By: Dave Hanson http://blog.filife.com/why-dont-theyoffer-super-high-yield-savings-accounts-for-down-payments/#comment-384 Dave Hanson Wed, 12 Dec 2007 06:12:59 +0000 http://www.filife.com/why-dont-theyoffer-super-high-yield-savings-accounts-for-down-payments/#comment-384 Just saw your post Tara. I have two answers to your questions. First, the mortgage savings account. DCU.org , one of the best national credit unions with open membership (just join an affiliated association), has something very much like the mortgage savings account you wish for with their "American Dream" program described at https://www.dcu.org/prodserv/savings/american_dream_program.html . There are conditions, but they aren't especially burdensome. Second, the Citibank savings account. Citi has an annoying tendency to cut the rate on existing accounts, and then launch new accounts with better rates, in the hopes that current account holders will settle for the dropping rate. Now, their best "esavings" product is their "Ultimate Money Account", with an APY currently one half percent higher than their "e-savings account". A current Citi customer like yourself can open it instantly online with no fees or minimums. Hope those help, Dave Just saw your post Tara. I have two answers to your questions.

First, the mortgage savings account. DCU.org , one of the best national credit unions with open membership (just join an affiliated association), has something very much like the mortgage savings account you wish for with their “American Dream” program described at https://www.dcu.org/prodserv/savings/american_dream_program.html . There are conditions, but they aren’t especially burdensome.

Second, the Citibank savings account. Citi has an annoying tendency to cut the rate on existing accounts, and then launch new accounts with better rates, in the hopes that current account holders will settle for the dropping rate. Now, their best “esavings” product is their “Ultimate Money Account”, with an APY currently one half percent higher than their “e-savings account”. A current Citi customer like yourself can open it instantly online with no fees or minimums.

Hope those help,
Dave

]]>