One of the things I am constantly doing is going to BankRate.com and checking out the latest financial rates, such as for CDs or savings accounts.  Its was hard for me to save money during undergrad, so whenever I did save money, I wanted to make sure I was making it work as hard for me as possible.  There are tons of banks out there, and they all work hard to try to get your business.  Also, all of their perks are appealing to some, and not others.  If you sign up for Bank X, you could get a set of cooking pans.  If you set up for Bank Y, you could get an Ipod Nano.  They all cater to different demographics.

I’m going to disclose right now that I do my checking account through Key Bank, and I do my savings through E*Trade.  The reason for this is I don’t want you to think that I’m trying to get you to go one way or the other.  I signed up for Key Bank because they did, in fact, give me an Ipod Nano.  I signed up for E*Trade because it was the best interest rate around.  There are a lot of banks I’ve never heard of on the list at BankRate.com, so that tells me two things: 1- They may just be posting those rates to get more business, and 2- There is probably a reason I’ve never heard of them.

With everything going on with banking these days, in my opinion it’s better to go with names that people trust and recognize.  I just feel safer that way.  So today I’ll look at two banks: E*Trade and HSBC.

• E*Trade, (again I’m being biased here) is seriously sweet.  It costs next to nothing to open up an account, and I was able to do everything online.  I set it up so that I can transfer money between my checking account with KeyBank and savings with E*Trade.  The only downfall to this is that it takes up to 3 business days to transfer the money.  However, if you work (which many of you probably do) you can set it up so that on payday, it automatically transfers $50 or $100, or however much, to your savings.  I like doing that, because then I don’t even miss the money.

Interest Rate: 3.30% APY

Online Statements: Required (sorry for all of you paper lovers out there)

Minimum Deposit: $1.00 (told ya it was next to nothing)

Rating: 4/5 Chipotle burritos to E*Trade.  Customer service is great. interest is 8x national average, easy to transfer money, and REALLY easy to set up.  My only beef is that you have to either deposit to your savings account online or mail in a check.

• HSBC is virtually identical to E*Trade, except that HSBC offers an even BETTER interest rate!  You can do all of the same things as you can with E*Trade, and you can deposit your money at HSBC ATMs across the country.  I can’t vouch personally for HSBC, but I have some friends that use it and swear by it.

Interest Rate: 3.50% APY (Only guaranteed through 9/15/08, so if you want this, you have to act quick!)

Minimum Deposit: $1.00

Rating: 5/5 Chipotle burritos.  Better APY, and in addition to mailing in your deposit or contributing online, you can also deposit it at HSBC ATMs across the country.  Click here to get started with HSBC now.  Chips and guac anyone?

View Zack's Profile      Subscribe via RSS