[Michael G.]

Finally....., Us "poor" people are finally getting a brake on our savings rates.

What's your gut feeling on On-Line savings accounts?

Rates very tempting.

Cheers TV People!

[Altavia]

Inflation rates are increasing much faster than interest rates, not sure there is any comfort in that situation.

[JohnN]

What are the rates these days? Last time I looked they were .2%

[Mrfriendly]

Originally Posted by Michael G.

Finally....., Us "poor" people are finally getting a brake on our savings rates.

What's your gut feeling on On-Line savings accounts?

Rates very tempting.

Cheers TV People!

Capital One up to 1.2% for savings. Chase still not so much

[retiredguy123]

The Vanguard Money Market Fund is paying 1.5 percent, and the Vanguard Short Term Bond Index Fund is paying 3.33 percent. I think a combination of those two funds will outperform most online savings rates, even though you have a little risk with the bond fund.

It looks like the highest online savings rate is about 1.75 percent. I will stay with mutual funds for the cash portion of my portfolio.

[Babubhat]

3 month Treasury 2.5%. Better than cd

[MartinSE]

I hear all this about savings being good or bad. I am not smart when it comes to investing, but "savings" accounts have always seems to be so low as to not be worth while to me. Mutual funds or other liquidish places always seem to pay more.

[Michael G.]

Originally Posted by Mrfriendly

Capital One up to 1.2% for savings. Chase still not so much

Goldman Sacs has a internet banking rate of 1.90%

[Michael G.]

Those rates on checking accounts are a joke.
Why waste the time/effort with $5,000 - $8,000 in a checking account and get 6 - 7cents a month.

[Caymus]

Originally Posted by Michael G.

Goldman Sacs has a internet banking rate of 1.90%

You may be looking at their CD rate or a promo. The savings rate (Marcus) is 1.2%. So, after inflation and taxes the real loss is only about 10%.

[retiredguy123]

Originally Posted by Michael G.

Goldman Sacs has a internet banking rate of 1.90%

It looks like the Goldman Sachs 1.9 percent rate is for a 12 month CD. The regular savings rate is 1.2 percent.

The highest online savings rate listed at bankrate.com is 1.75 percent at Citizens Access Savings Account. Note that it is "Citizens" not the "Citizens First" in The Villages.

[Michael G.]

Originally Posted by Caymus

You may be looking at their CD rate or a promo. The savings rate (Marcus) is 1.2%. So, after inflation and taxes the real loss is only about 10%.

The same way I feel about mutual funds, Taxes PLUS commission.
What's left?

[Caymus]

Originally Posted by Michael G.

The same way I feel about mutual funds, Taxes PLUS commission.
What's left?

You should never need to pay a commission. Schwab and others have tons of no commission and low fee funds. I hope you are not dealing with a "full service" salesman.

[Michael G.]

Originally Posted by Caymus

You should never need to pay a commission. Schwab and others have tons of no commission and low fee funds. I hope you are not dealing with a "full service" salesman.

I should of not use the word commission.
I should of stated "taxes + low fees" that needs to be paid.

[retiredguy123]

Originally Posted by Michael G.

The same way I feel about mutual funds, Taxes PLUS commission.
What's left?

The expense ratio for the Vanguard money market fund is 0.10 percent and the expense ratio for the short term bond index fund is 0.07 percent. There is no commission. These are extremely low cost funds that provide a reasonable interest rate and liquidity. You can also get paper checks if you want instant access to your money.