Apple bank savings account 5.25 percent interest for 25,000 is this too good to be true?
Question:
I am scared of stocks and dont think the market is going up any time soon.
Answer:
HSBC has 5.05% with no minimums.
If it's FDIC insured, it is as safe as it gets. And that interest rate is not outlandish for a CD of large size and a year or two maturity, although it does seem a bit high for a demand account. As for stocks, they are like real estate: the right time to buy them is always last week, last month, or last year. To illustrate: my Social Security benefits, if paid in a lump sum, would be worth $230,000. If my Social Security taxes had instead been invested in the Dow Jones Industrial Average stocks during my entire working career, the pot would now be worth $870,000, and the dividends alone would be more than I am getting in benefits now, without touching the principal. (This investment strategy is totally brainless -- it doesn't require doing anything fancy in the way of stock picking and timing.) Perhaps this will help you understand why Bush was pushing for private retirement accounts -- Social Security is the biggest ripoff since the German inflation of 1922.
E-Trade bank gives 5.05% with no minimum. The only thing you have to do is connect it to a checking account, and you can only make 6 withdraws a month, so 5.25% is not that far out of line for $25,000.
The federal insures up $100,000, up to that amount you are covered provided that bank is FDIC-insured.
E-Loan has a Savings account paying 5.25% for a $5,000 minimum. And a 5.36% 6 month CD for a minimum of $10,000.
Please note looking at the E-Loan savings account it too is limited to 6 withdraws a month. I'm pretty sure that this is a restriction that the government puts on these kinds of accounts. More checking it too has to be connected to a checking account (this is how you get money in and out of it). This is true of all these kinds of accounts. In lots of cases though the checking account can be with any bank you like.
HSBC, ING offers quite the same
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