You Can Increase Your Interest Savings Rate

Chances are the interest rate you are receiving from your bank is low. Maybe it downright stinks! This is strange as interest rates have been rising significantly on credit cards and certificates of deposits. Could it be that your bank is simply being cheap? Likely, you aren't satisfied with a savings rate of 1% and would like to get more for your money. On the other hand, tying up your funds for six or twelve months doesn't make you comfortable: you want to access your funds when you need them. Let's take a look at some ways you can raise your interest savings rate.

Credit Unions: At one time credit union membership was nearly impossible for the average person to get: you needed to belong to a company or to an organization related to the credit union. Today, many credit unions have relaxed their membership requirements. No longer must you be related to someone who belongs, simply being self employed could make you eligible to join. Best of all: your interest savings rate will be higher at a credit union, perhaps significantly higher than what you bank has to offer.

Shop Online: Online financial institutions such as ING Direct offer several different investment vehicles including daily "passbook" savings. The daily offered is usually within one point of what they pay for a six or twelve month CD. Guess what? CD rates are well over 5 percent now meaning a 4.35% return on your everyday savings is quite possible. Compare that rate to what your local bank offers.

Keep your local bank for a checking account and link that account to your online savings account. When you want to make a deposit to your online institution simply authorize them to make a fee free withdrawal from your checking account into your high rate interest savings account.

Another advantage to a higher rate interest savings rate is that the rate typically beats the inflation rate. At 1% your rate lags behind inflation which is currently running at 3.5% each year. On the other hand a rate of 4.35% helps you stay ahead of the game. Which rate appeals most to you?

Finally, online banking offers online statements to easily track your funds. No running out to the bank to make a deposit nor must you wait for the postman to deliver a statement. You'll be notified by email when your monthly statement is available for your review.