Hey Guys, I currently use HSBC which used to give me a return of 3% but now its 1.35%. Recently my parents asked me to find them a savings that gives a little more than what they are getting now. What savings account would you recommend for the best return. Just a standard savings account. What % return are you getting right now?
You won't find anything that's much better(3% or higher). The government has dropped interested rates to just above zero to get people save less and spend more to spur the economy. They are taking from the savers to benefit the spenders. I have Ally Bank(formerly GMAC). It provides 1.35%. If you want a list, you can go to fatwallet for a fantastic thread on savings accounts, 122 pages and counting. The "Quick Summary" is constantly updated with new rates. There are a few guys at 2%, but you should do your research. http://www.fatwallet.com/forums/finance/783099/
Yes, start with the FDIC. One should always verify that an institution is FDIC insured, especially with these smaller internet banks that you don't know about. https://www2.fdic.gov/drrip/afi/index.asp
Oops. wrong link. I posted the link for FDIC insured failed banks. LOL Here is the correct link. http://www2.fdic.gov/idasp/main_bankfind.asp
I went through similar, somewhat exhaustive research in having to decide on a new bank. This day an age, especially with the low savings rates, there's almost no point to have both a checking and savings. The only reason I wanted both is for the psychological benefit of knowing I had "backup" money. Eventually savings rates will climb back up, but it's not like there's going to be an extreme difference of interest earned (unless you have like > $50,000 you don't plan on touching for, say, 3-7 years by putting it into a CD. But that's just my opinion. Online banks (like Ally, ING) may be more willing to offer better rates sooner than standard banks since they are typically more aggressive in their marketing towards potential new customers, given their lack of overhead. I stumbled upon and went with USAA Federal Savings bank since they offered (most) everything I was looking for: ATM reimbursements, no minimum account balances or fees, great online/mobile banking, and exceptional customer service. They even offer deposits at home, but I didn't qualify (or don't have the required account balance yet). Good luck with your research.
