So, what's the big deal? Interest rates are so low is it worth shifting money around? If you like money...and want to maximize your savings...then my answer is absolutely. What is the difference in how much you would make if you had $1,000? Let's check out the results:
- Ally - $8.40
- ING - $8
- Emigrant Direct - $6
- Non-interest earning account - $0
The function of a online savings account is to save money to make a purchase. The purchase can be to buy a new TV, car, investment or whatever. The other function would be a place to store emergency funds. With many investments they require a minimum threshold to purchase. With U.S. savings bonds you need to save $25. With a U.S. Treasure Note the minimum is $1,000. Many mutual funds requires $2,500 unless you start some kind of automatic investment into the fund monthly. Lastly...if you can find a local bank that pays you a higher interest rate than an online bank, do it.
The savings account is not your money making account. However, try and get in the habit of maximizing your dollars. This will help you in becoming a Military Millionaire.