Capital One offers a great interest rate on its InterestPlus account, but only if you read the fine print and follow the rules.
If you have $1,000 or more to invest in your savings account, you may want to take a look at the Capital One InterestPlus Online Savings Account. The APY is 1.35%, which is currently one of the highest rates available, and Capital One states there are no fees for this account. You also get an extra 10% quarterly bonus on your interest earned, but to qualify for the extra 10% bonus you must have at least $15,000 in your account each month or have a Capital One credit card that you use at least once a month.
If you have excellent credit are interested in taking advantage of the InterestPlus 10% bonus but don’t have $15,000 to keep in your account every month, you may want to consider getting either the Capital One No Hassle Cash Rewards Card or the Capital One Platinum Prestige card. Both cards come with a 0% introductory APR until July 2011. After the introductory APR period is over, the APY of the No Hassle Cash Rewards card increases to 14.9% and the APY of the Platinum Prestige card increases to 11.9%. Neither card has an annual fee, which is great news for customers in a time when banks are commonly increasing fees in an attempt to maximize profits.
If you’re a Costco member, you can get an even better interest rate through the Capital One InterestPlus account. Costco members can take advantage of a 1.40% interest rate, but there’s a catch. To get the higher interest rate through Costco, you must have $5,000 in your account instead of $1,000. You can still get the extra 10% quarterly bonus, but only if you keep at least $15,000 in your account each month. Through the Costco program, you can’t get the 10% bonus by just using a Capital One credit card once a month. However, you are eligible for an additional Costco member incentive: $60 if you’re an Executive Member, and $20 if you’re a Gold Star and Business member. This additional incentive will be deposited into your first Direct Banking account opened through the Costco program with at least $5,000 deposited into the account in the first 30 days after opening.
For the best information on credit cards click on the "Credit Cards" tab above, for the best information on savings account rates click the "Savings" tab above.
Although community banks are often overlooked, they can rival-ââ¬âand often exceed-ââ¬ânational banks in savings account interest rates.
Are you disappointed in the current interest rates offered by national banks for conventional savings accounts? The solution may be no further away than your local community bank. Like credit unions, many community banks are concerned with the needs of local customers and they invest in community development. Many community banks also have less restrictive lending practices and are willing to consider other factors such as character and family history before making decisions on loans.
While big banks such as Bank of America are currently offering interest rates as low as a 0.10% APY on regular savings accounts, many community banks are offering interest rates at 2.00 and above. In Pennsylvania, Dollar Bank is offering a 2.00% APY on balances below $20,000 for their FreeMONEY Savings Account if you have a Dollar Bank FreeMONEY Checking or e-Checking account.
Other community bank offers require a little more footwork. For example, the North Middlesex Savings Bank is currently offering a 2.25% APY for their Simply Save account. To earn the maximum interest rate, the account must have at least one $50 deposit posted during the interest cycle, but the deposit must be made in person at a banking branch. If you are a resident of that community, the savings interest rate may be worth a monthly trip to the bank.
The bottom line: never discount local banks while researching interest rates just because the bank doesn’t have a national presence. Some community banks do not allow people to submit applications unless they live in a community area, however, so always check with bank before completing your application.
For the best information on savings and money market account interest rates, click on the "Savings" tab above.
The financial strength of an insurance company should be an important consideration before you buy a policy. Hereââ¬â¢s why.
You may know the financial strength of your bank and of the companies in your stock portfolio, but do you know the financial strength of your home and auto insurance company? Economic instabilities can drastically affect a marginal company, and if there’s a catastrophic event that results in multiple policy claims, the financial strength of an insurance company may impact claim payments. Although insurance companies typically purchase reinsurance (a practice where portions of risk portfolios are transferred to another company to reduce the likelihood of having to pay a large obligation), if an insurance company has a bad financial rating, this can reduce their ability to obtain reinsurance. Additionally, if an insurance company goes insolvent, reinsurance doesn’t apply. This, in turn, can reduce their ability to pay you—the policyholder—when needed.
An insurance rating system, such as that developed by A.M. Best or Standard & Poor’s, analyzes the ability of insurance companies to meet its ongoing insurance policy and contract obligations. You should use extreme caution before signing up for insurance with any company rated “B” or below. That auto insurance policy company XYZ just quoted you may be 20% cheaper than any quote received from other companies, but what will that policy be worth if you have an accident and can’t get your insurance company to pay according to your contract?
You can register for a free basic subscription account at both A.M. Best and Standard & Poor's to research your insurance company’s financial strength. It’s always a good idea to check on your insurance company’s financial strength rating at least once a year, and always check out the rating before signing up for a new policy.
