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Which bank offers the best interest rate for savings accounts (pref. with no minimum) in the NYC metro area? |
I am currently at Citibank and they don't offer their 4.5% interest rate on savings accounts until i have at least 10K in it. Right now I have about 5K and wanted to see if there were banks that offered a good interest rate with little to no minimum. I also noticed Citibank takes a while to clear checks which has been a bit of an annoyance. Aside from interest rates, any opinion on the best bank for a young professional looking to save as much money as possible with little hassle? Thanks! You can open a Citibank e-savings. It gives 4.5% APY with no minimums. Its an online savings account and the only minimum you need to have in there is $1.00 to keep the account active. Even though many companies say "no minimum balance," they really mean you should be able to keep $1 in there. You should also check out HSBC Direct and EmigrantDirect since both give a 5.05% APY. But if you really want to build wealth, you need to start investing. You ask any wealthy person on how they accumulate so much wealth, they will say they invest their money. I have not met a single wealthy person who put all or most of their money into a bank account. If you currently have a job, you can open an IRA account. I wouldn't open it at a bank since they will invest your money in fixed accounts. Fixed accounts guarantees you an interest rate for life, but they may not be able to keep up with inflation. So you want to put mutual funds into your IRA account. Mutual funds has perform (at least the ones I deal with) has perform on average of 12% in the past 25 years. Since you say you are young, I would invest in aggressive growth fund or large growth fund and in a large blend fund. If you save $200/month with a 5% rate of return, in 30 years you will have $167,145. Of course, all the interests earned in the bank account are taxable. So your rate of return is actually lower. At a 10% rate of return, in 30 years you can potentially have $455,865. You can get 10% rate of return by investing in mutual funds. You will pay income taxes on the capital gains and dividends on it. Unless you put them in an IRA account, then you don't pay income taxes every year. It grows tax-deferred. At a 12% rate of return, in 30 years you can potentially have $705,982. Source(s): Citibank e-savings: http://direct.citibank.com HSBC Direct: http://www.hsbcdirect.com EmigrantDirect: http://www.emigrantdirect.com To learn more about IRAs and mutual funds: http://finance1o1.blogspot.com Check out bankrate.com they have several sections for bank realted rates adn you can search by area. www.bankrate.com You can try ING Direct an online bank. They have a few branches and have a decent interest rate. I hate Citibank for a million reasons. Try Commerce Bank (I use the one on Madison and 42nd.) The only problem I have had is they don't have a branch on every corner as Citibank does and when you travel out of State (ex: Florida) you won't find one either and need to rely on using your card at other bank facilities to withdraw money. But the customer service and checks clearing are 100 times better. Paypal is the best bank for that, bill gates and all those people find economy using this bank, plus the service is excellent |
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