Consumer Reports: Places to Put Cash
Consumer Reports wrote the article, "6 Places to Put Your Cash Now," earlier this month. It tells us, "If you keep your cash savings in a brick-and-mortar bank, you may not be aware that you earn significantly more at other kinds of institutions, such as online banks and credit unions. Large national players like Ally Bank, American Express National Bank, Marcus by Goldman Sachs, and Alliant Credit Union are currently paying interest of 1.5 percent and more on new online savings accounts, and 2 percent or more on one-year certificates of deposit. Capital One's online 360 Money Market account is paying 1.6 percent. By contrast, brick-and-mortar institutions such as Chase Bank, HSBC Bank, and Wells Fargo are currently paying 0.01 percent, according to Bankrate. Behind the rate race is competition for customers and Federal Reserve actions." The piece recommends four strategies, including: "Online savings accounts currently offer yields of 1.5 percent or more annually. They're among the safest savings vehicles and up to $250,000 in deposits per account, whether through a bank or credit union, is covered by federal insurance.... Money market accounts offer around 1.8 percent these days. These accounts are similar to savings accounts, but with some additional benefits and restrictions.... Money market funds are good options as a secondary savings account, or to hold a portion of your emergency money. They are offered by mutual-fund and investment companies and currently provide returns around 1.85 percent.... [and] High-yield reward checking accounts."
