Best bank for savings account or CD?

Best bank for savings account or CD?
I currently have 3K i put in a savings account at a local bank but it is terrible. It has a 0.025 percent interest rate. I am planning to put 5K in another bank that pays good interest. The only reason why i had money there was b/c they would give me a credit card because I had a hard time getting credit card at other banks.

I live in nyc and i have been reading about all the banks that offers savings accounts that offer 5 percent interest or APY, not sure which one it is.

What banks do you use for savings accounts? I only have 5K to put into savings to put aside right now. Some I saw that are good are Citibank Direct which is 5 percent, HSBC online is about 5.05 percent and it said only if you do it online. I see Amtrust at 5.36 percent but it says its a money market and not a savings account and I am not sure what money market is.

Or should i just get a CD instead of savings? If CD, what bank should i go for with the best offer?


Answers:

Rella:  Visit this site for a comprehensive list of banking options:
http://www.bankrate.com/ />
I think this is a good online-only bank:
http://home.ingdirect.com/

If you know you won't need your money for awhile, might as well put it into a CD, which usually offers higher rates than a savings account because it is not as liquid.
2007-08-16 21:47:15
C C:  I would check into a credit union also, they often have higher interest rates.

I would not tie up your money in a cd unless your 100% sure you will not need because to pull it out of cd before it matures gets you penalized.

Maybe you could split the 5000 into two different cds..one for a longer term and one for a shorter term. Also check into money market accounts, some have no min, balance and do pay a higher rate.
2007-08-16 21:47:43
DU:  I would not open a CD account. because of the restrictions and unavailability to retrieve the funds quickly. I have had 2 accounts that were online savings one was 4.5% the other is 5.05%. No fees and restrictions. one is HSBCdirect.com and the other INGdirect.com. I really like both but obviously i consolidated all to HSBCdirect.com. Hope this helps.
2007-08-16 21:49:14
Huynh T:  Please don't trust any advice to open account online they are scam. Go to your local bank where you live, like bank of america, wellsfargo, washington mutal. With your 5k you can open a short term CD for 5 month, it is better rate than saving.

again do not open the account online with the you don't know.
2007-08-16 23:15:05
Chosen Answer
ed m:  OK here is an ideal -- your bank like mind might be having Cd's as low as 1k with an interest of 5.21 for 7 months -13 and 15 21months == don't ask me why they picked those months == anyway with Cd's it is better to "ladder" them than should you only need part of the money you would only loose the interest on a small amount -- if your bank had such a deal i would go this route and as they come due you have three choices --roll over. take the interest and roll over, or cash them in--- god it is nice to answer a question from some one who does not have bed credit owes 65K on a cc and about to lose the house.. keep up the savings and good luck!!!
2007-08-20 13:03:17