Get Your Money Out of a Regular Savings Account

20Apr08

NOW

You are not making the most out of your money by keeping it in a regular savings account at Wells Fargo, Bank of America, or <insert your favorite brick & mortar bank of choice>. The thought of making less than half of a percent every year on your hard earned money is injustice.

Less than half of a percent is probably the yearly rate on your savings account if you’ve got it at your regular bank. Why not put your money into a high yield savings account like ING Direct Orange Savings. You will be earning 3.00% at the time of this writing if you save with ING (my personal favorite). This is 3.00% while we are in a so-called “recession.” The rates will climb higher once our economy turns around.

The Numbers

I am a man of statistics. Lets say I have $10,000 in savings. As of today’s interest rates:

ING Direct Orange Savings at 3.00%

$10,000 * .03 = $10,300

Total 1 Year Earning = $300

Wells Fargo Preferred Rate Savings at 0.30%

$10,000 * .003 = $10,030

Total 1 Year Earning = $30

With ING Direct Orange Savings, you are potentially making $270 more a year just by keeping your money there instead of Wells Fargo. Now chances are, you have a regular Wells Fargo savings account, and not even the Preferred Rate Savings, meaning you would make less than $30 a year for banking with them.

Tools

Check out this nifty calculator that will show you how much you can earn in the long run by saving every month. The power of compounding will grow your earnings much faster when you’ve got your dough in high yield savings.

How Do High Yield Savings Accounts Work?

Good question. By doing business online, there are no operational costs. These savings get passed onto the customer, which gets us higher interest rates. Now you might ask, “But Sheehan, I trust my brick & mortar bank, they won’t steal my money.” Sure, having Wells Fargo down the street is convenient, but if you choose a high yield savings account that is FDIC insured like ING Direct your money is safe and backed by Uncle Sam up to $100,000.

Still not convinced conservative Carly? You can transfer funds easily between ING Direct and your local bank. If you ever need to tap into your savings simply transfer it over to your standard checking or savings account and within 5 business days the benjamins’ will be there.

Honest Opinion

ING Direct Orange Savings is simple and easy. The online interface is clean, and its really easy to see how much you’re earning. They are sticklers for being secure. Wells Fargo just requires me to enter a username and password over an encrypted connection to access my bank info. ING Direct not only requires that, but also a secret PIN number and special splash page that warns you if you are being phished or not. Your money is serious business.

Sweet Deal

No this isn’t shameless self-promotion, but I can refer 25 people to ING Direct Orange Savings. If you use one of my referrals you can get started with your high yield savings with $25 which ING Direct will deposit into your account with no hidden agenda. To qualify for the $25, simply deposit $250 into your account and you’re good to go. There are no minimum balances and no fees, which is why I like ING so much. Leave a comment with your e-mail address and I’ll be sure to get you hooked up.

Links

ING Direct Orange Savings isn’t the only online high yield savings account out there. In fact there are plenty more, and even some that offer higher interest rates. Based on reviews I chose ING Direct because of its ease of use and great customer service. If you want to learn more about the different banks and different rates check out:

Which Online High-Yield Savings Account Is Best?

If you want to learn more about ING Direct check out their website:

ING Direct

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5 Responses to “Get Your Money Out of a Regular Savings Account”

  1. 1 WAY older than fratboy

    I’m going to sign up with ING–I’ll take one of those referrals if you’d like.

    Thanks,

    R.


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