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Best savings rates
So far I've found Ally has the best rates at 1.49% with INGdirect a close second at 1.25%. I need a short term savings account to hold a $5,000 check my FIL gave us intended for a vacation trip this spring, however, we aren't sure we will be able to go. In the meantime, we'd like to get the most out of the money while we are sitting on it.
I considered going with a 3 month CD, but we may need to pay the money back before the maturity date, and besides most CD rates are lower than the savings rates I've found so far.
Whatever the investment it has to be very safe and available for short terms. Did I already find the best I'm going to get or is there a better product out there?
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Re: Best savings rates
Probably ... particularly so with Ally Bank's zero early withdrawl penalty CD offer. You can sign up for the longest available term at the highest possible interest rate, and then exercise your zero early withdrawl penalty option whenever you need the cash. This is made possible because Ally Bank is a division of GMAC ... who has received billions of dollars worth of zero interest rate TARP / gov't grant money. Your taxes are paying for part of this, so you might as well profit from it.
If you have more money to put into a CD, you can find much better interest rates being paid on foreign currency CD's. One potential source is . Rates on Australian Dollar CD's is 3.5% right now. Of course you also take the risk of loss / add the opportunity to profit if the US dollar versus Australian dollar exchange rate swings against you / in your favor by the time the CD matures.