Consumers - Wap Mutual Funds

Higher Savings Rates For Everyday Consumers

Consumers often take what is given to them for granted. This is a shame as the wise consumer, the savvy one, shops around for the best deals out there. Thanks to a competitive marketplace, if one merchant doesn't have what you want, then another one may and at a price that is much more affordable to you. The banking industry is one area where consumers are finally realizing that competition is not only good, but profitable. Are you still receiving only one percent on your passbook savings account interest? If so, you are losing money and missing out on some wonderful and profitable opportunities.

Savings rates via commercial banks have hit an all time low. Thanks to historically low federal interest rates, banks began paying a measly .50 percent on savings accounts. Despite the four year long rise in interest rates, that figure is still low, around one percent.

Consumers who leave their money in low rate savings accounts are actually losing money. Sure, they are receiving one percent on their interest - which is better than the rate they would receive if their money was under a mattress, but inflation is running around four percent each year. Consumers aren't treading water when it comes to passbook savings accounts, they are slowly losing their shirts!

The good news is that some financial institutions are paying more, a lot more in fact, then the miserly commercial bank rates out there. Thanks to the internet, shopping around for one of these savings vehicles has gotten a lot easier. Internet based banks allow for consumer to sign up for accounts online, wire their monies to them, and enjoy higher interest rates on everyday passbook accounts. Rates that are now above inflation, currently running as high as five percent.

The best thing about these savings accounts is that you don't have to tie up your money at all. Unlike a certificate of deposit account, these savings vehicles allow you to withdraw your money as you wish, on daily basis in fact.

So, who is offering these great deals? Many federally backed institutions including: ING Direct, Emigrant Direct, HSBC, Citibank Online, and countless others. Even American Express is getting into the game.

Yes, if one percent interest payments on your savings accounts do not thrill you, then shop online for rates that are higher than inflation and provided by financial institutions backed by the U.S. Federal Reserve.