Almost a year ago, we signed up for our first high yield savings accounts. If you are not familiar with these high yield accounts, you should be. The average bank savings account gives you .25 to .50 percent interest. There are particular online savings accounts that at one time were even giving 6.0 % on savings accounts. Since they are able to save money in various ways (most of them do not even have a real brick-and-mortar banks you can visit), they pass these savings on to you.
We signed up for FNBO last year, since they were offering 6.0% at the time. But over the course of the year, with the declining stock market, various mortgage market problems, and the fed cutting the interest rate, FNBO has now dropped to 3.25%. Combined with sub-par customer service and a really annoying web interface, we finally decided to pull out. I transfered all of our money back to our standard account, and waiting to move to my new online account.
This time we have decided to go with e-trade. They are currently offering 3.45%, and I am hoping they will stay there for a while. One of the other benefits to e-trade is how you can move your money through various accounts. For example, if I find a particular stock that I am interested in, I can easily move money from my savings account to stocks. Once I decide to sell the stock, it goes directly back into my high-yield account. After making almost $700-1000 in stocks last year, Debs and I are very interested in seeing how we can do this year!