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Bank Account Rates Rise as Banks Compete for Your Business

October 4th, 2008 • Related • Filed Under

The best place to keep your money right now might just be the local bank. Small and medium size banks - especially those that do not sell their home loans, offer an incrementally safer place to stash the cash while the market figures itself out. So while it might be tough to get a loan right now, if you shop around, you could land a great CD or savings account interest rate.

On-line banks are jumping into the ring, too. There’s even an on-line bank rate auction site called MoneyAisle that allows banks to bid for your CD and savings account business. Endorsed by the NY Times, Fox Business Channel, and CNBC, the site allows only FDIC insured banks to participate, and the service is free.

Bankaholic and Bankrate have search engines that can help you find the best rates as well.

Even if you’ve decided to weather the market crisis, consider shifting your current savings to a higher rate account. It certainly won’t offset the market losses we’re all enduring, but every little bit helps.

playrisk Bank Account Rates Rise as Banks Compete for Your Business

There Are 3 Responses So Far. »

Comment by Daphne on 7 October 2008:

Hey, nice blog! I like the graphic on tossing the coin to decide what to do in these turbulent times!

You also have a very impressive sidebar, with so much information. The layout also caught my attention. Keep up the good work!

Daphnes last blog post..Start Small
Comment by Kevin on 18 December 2008:

This is great info… however, another great solution would be to join a credit union! Credit unions pass profits along to MEMBERS (who are also owners) in the form of lower rates and fewer fees.

Credit unions have never asked for - or needed - a bailout and are not part of the current economic problem. Credit unions have always adhered to conservative lending practices, not the risky loan programs and subprime mess that everyone had heard so much about.

Also, many people don’t realize that the credit union deposits are federally insured to at least $250,000 by the NCUA (National Credit Union Association) just like the FDIC for banks. As not-for-profit cooperatives with their member-owners’ interests in mind, credit unions hold on to mortgage loans instead of selling them to a secondary market for a quick dollar. And unlike banks, credit unions are locally owned - members’ money stays local, and gets reinvested in the local community.

People should know that there are still some very sound and responsible financial institutions out there. With everything that’s been going so wrong in the economy, it’s nice to let people know someone is doing something right!
Comment by Lisa on 19 December 2008:

@ Kevin- You bring up some great points. Thanks for passing the information along. Lisa