High yield accounts

[Danno]

Hey everyone,
Just sold a vehicle and have about 35K that I need to do something with. It's currently sitting in a low yield savings account earning about 1%. I've been looking around a bit and found a no minimum account with ING that earns 3%. Also saw 7 month CD's earning 4.1% here https://bank.countrywide.com/CWBRates.aspx?tab=cd

seems like a pretty good deal, but I know nothing about Countrywide. Would appreciate any and all advice as to where the best place to keep my money. I don't want to tie it up for more than a year.

TIA

Danno

[Megan]

As long as your CD is at a bank that is FDIC insured, you should be fine investing the $35K in a CD at Countrywide or elsewhere. If you don't want to tie up your money in a CD, a high yield savings account might be your best bet I use ING Direct, and love my accounts there. HSBC has slightly higher rates right now. I've used them as well, and they're a fine place to put your money - I just personally prefer ING's features, even though rates may be lower.

[amyschiff]

Do you have a retirement fund set up? If not, you could set up a Roth IRA in conjunction to a savings. with $35k you would already have 6-7 years of the maximum annual contribution to a Roth. You could basically let the money earn interest in a high yield savings and then just contribute the annual maximum to your Roth once each year.

[Danno]

Thanks for the replies...much appreciated. Does anyone know of a savings or a short term CD account earning better than 4.1%? That seems like a pretty decent rate for a 7 month CD....and yes, Countrywide is a member of FDIC, so I should be safe there. I don't want to tie anything up for more that a year at this point because my son will be starting college in the fall of 09.

[Xin Lu]

bank of america has 4.11% apy for 7 months CD also. I guess BoA bought CountryWide anyway so they're probably doing the same thing.

[Dividend Growth Inve]

Have you thought about opening a rewards checking account? Most such accounts require you do do 10 debit card transactions per month, check your balance online and not receive any paper statements and they will pay out about 5%. In addition you can deposit or withdraw funds at any time.

[*bbj*]

There's also shorebank. they offer 3.5%, they've been around MUCH longer than most of the other HYSA accts (since the 70's) and they have over 2 billion in addition to the fdic insurance. Plus, they focus on renewable, sustainable, and community driving investments.

There's more than just money going on.

[EmilySBK]

I agree with *bbj* in that HYSA is the way to go. You will definitely be able to earn a much higher interest rate. And with banks that promote corporate social responsibility, there's no going wrong.

[JosephSBK]

ShoreBank, the bank that I represent, offers a High Yield Online Savings Account with a competitive interest rate of 3.50% and a $1 minimum balance. It has 24 hour online accessibility, allows for you to link up to six accounts for electronic transfers, and is FDIC insured. If you have any questions about our High Yield Online Savings Account please don't hesitate to ask, that's why I'm here! Check out more information about this account by clicking here.

[Emily J]

THose looking for high yield savings accounts check out www.bankrate.com and www.moneyaisle.com. The second one finds the best rate for a HYS from a large number of banks that have a good rating and are FDIC insured.

Emily