Thursday, January 24, 2008

High Yield Savings Account

As I mentioned in My Frugal $ense Pick for January, there are quite a few ideas that I like on Bankrate's contest this month. Another one of my favorites is High Yield Savings Account submitted by Sumit Malden. It's similar to Treat Your Credit Card Like a Debit Card that I commented on in November.

The online banks, like ING, do offer great rates -- relative to your standard "bricks and mortar" banks. Of course, with the Fed cutting interest rates lately, these great rates on the savings accounts are shrinking across the board. I know it's helping people with loans or who are considering borrowing (which in turn should help boost the economy). However, that means it's not helping me (because I'm fortunate to not have any debt right now). In fact, it's just hurting me because the earnings on my short term savings are decreasing with the interest rates. (And then I look at my retirement savings and groan too...but it's okay; I have plenty of time to ride out the market.)

All right, I'll stop whining about that and wait for the economy to sort itself out. I'll also wait for the $600 check that it sounds like Congress is going to send me this spring. That will more than make up for what I'm losing with the interest cuts! How I do love a rebate!

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