I was wondering what a good interest rate on savings accounts are?
I recently opened 2 savings accounts, after looking at the interest percentages I noticed a big difference. one says
Annual Percentage Yield
APY 0.50%
nominal interest rate 0.50%
and the other is
apy 3.0%
rate 3.0%
i know the second looks better but what is the difference when you break it down to the dollars/cents
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The difference is 2.5% (3.0 – .5). You can get more in a money market account. Check this link for available rates: http://www.money-rates.com/mmarket.htm
or search Money Market Rates.
First of all, closed the account that only pays .50% APR. That is not even one percent. Ridiculous. Plus you have to report that meager interest on your income taxes as well. A double hit. Check out bankrate.com for better deals. You best bet is an on-line savings account such as ING.Direct. Overhead is a lot lower because they do not have many branches to maintain like some local banks have.