Maximizing Interest

 | March 23, 2008 7:30 AM

Over the years I have been pursuing the best way to manage my finances that maximizes interest without too much inconvenience.

This is my current setup.

Washington Mutual for free business checking, free personal checking, free personal savings. The checking accounts have zero interest and the savings account as of today has an interest rate of 0.25% APY. I use these accounts for depositing checks and keeping a very small amount of cash on hand, less than $500.

Most of my long term savings are with Countrywide Bank which is 4.05% APY.

I used to use ING Direct but their rates have become less competitive. The current APY rates for Electric Orange are:

$0-$49,999.99 1.75%
$50,000.00-$99,999.99 3.20%
$100,000.00 or more 3.40%

The current rate for Orange Savings is 3.00% APY.

Most of my mid-term money is in my GE Interest Plus Checking Account with the following APY.

$0-$14,999.99 3.04%
$15,000.00-$49,999.99 3.20%
$50,000.00 or more 3.35%

On February 4, 2008 I learned thanks to this blog article that I can get a savings account with Washington Mutual that has a 3.55% APY interest rate. Such an account will both maximize interest and make things easier in terms of transferring.

I attempted to open this account following these instructions.  I also tried to open an online savings account directly.  Unfortunately after trying for several weeks I’ve given up. It looks like they have my incorrect credit information. In fact because of this I ordered my free credit reports to make sure my information was not incorrect.

One Response to “Maximizing Interest”

fkimplicity » Bank Rates sent a pingback on September 6, 2008

[…] 5 I see these rates in my various bank accounts (last time I checked was on March 23, 2008 in my Maximizing Interest article).  I guess all my money should be in my WAMU Online Savings account.  The banks keep changing […]

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