Financial Fellow

Written by J.P. Wicklein

Presently, only a couple banks offer a savings account with an annual yield of at least 2%. Several other banks offer an APY of at least 1.75%. In addition to their online savings account rate of 1.70%, Ally Bank offers a No Penalty CD with a slightly higher yield – 1.85%.

* Note: Minimum opening balance required to receive APY.

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Written by J.P. Wicklein
     Ever checked out the interest rate on a CD or savings account and seen two different numbers?  Interest rates on deposits are often reported two ways:  The annual percentage rate (APR) and the annual percentage yield (APY).  So, what’s the difference? 
     The APR is the interest rate on your deposit.  [...]

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Written by J.P. Wicklein

Over the last few weeks top interest rates have dropped. The largest dip came from Ally Bank (formerly GMAC bank) – a quarter point decline to 2.00%. Overall, the best online savings rates remain in the 1.5% - 2.0% range.

* Note: Minimum opening balance required to receive APY.

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Written by J.P. Wicklein

Interest rates on savings accounts have been steadily declining for quite some time. Over the last month, though, rates have leveled off a bit. Here’s a look at the best online savings account interest rates:

* Note: Minimum opening balance required to receive APY.

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Written by J.P. Wicklein

     Last week I wrote an article comparing high interest online savings banks.  Since then, a few online banks dropped their interest rates (see table).  Falling interest rates are nothing new. The interest rate on my ING Direct savings account has been on a steady decline for the last 2+ years. It’s gone from an APY of 4.50% all the way down to 1.85%. The last two months alone have seen the APY drop almost 1.00% over the course of four rate adjustments.

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Written by J.P. Wicklein

     Several years ago I decided to shift my savings account from my local, brick-and-mortar bank to an online bank. I did so to take advantage of the higher interest rates paid by online banks. Since they don’t have the overhead associated with their brink-and-mortar competitors, many online banks will offer customers a higher interest rate. Here’s a closer look at the three, major online banks:

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   Written by J.P. Wicklein
     The following summarizes each of the Financial Fellow articles for November 2008 in two sentences or less.
1)   How to Avoid a Big Tax Refund:  If you wish to increase your take home pay throughout the year, while decreasing your annual tax refund, you can do so by increasing the number of [...]

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   Written by J.P. Wicklein

     I graduated from college with $25,000 in student loans.  Shortly thereafter I consolidated the loans at a fixed annual interest rate of 4.125% over a 20 year period.  Each month I make the minimum payment on my consolidated loan and not a penny more. Why? Since the interest rate on my student loans is so low, any additional money I could use to pay down my student loans is better spent contributing to retirement savings or paying down higher interest debt.

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