Savings Account

Ally bank and ING Orange have the best savings account interest rates at this moment. But they both have no customer facing desk. I suggest getting a local bank and using either an ally or orange account for a longer term savings.

Quote from lordmcfuzz : Ally bank and ING Orange have the best savings account interest rates at this moment. But they both have no customer facing desk. I suggest getting a local bank and using either an ally or orange account for a longer term savings.

Thanks, I'll look into ING Orange. How low are interest rates for savings accounts with Chase/BoA?

Saving is always good. Start early and learn to live below your means. Have a routine to put money away.

I would wait for a "open a chase account and get 250$" promo or something like that. Thats a good start for you.

Quote from lolreconlol : Thanks, I'll look into ING Orange. How low are interest rates for savings accounts with Chase/BoA?

You want high interest rates for your savings. You'd have to look up their rates on the website. Be aware of minimum balances and account fees(like maintenance or not keeping the minimum).

pay off loans

I can't stand BofA, and everyone I know that has accounts with them can't stand them either. They all thought paying account fees was a norm. I've never paid any kind of account fee with any bank.

As said, pay attention to the requirements for an account. Interest rates on savings accounts at BofA and Chase are pretty lousy, if they give anything at all. The benefit used to be that a savings account earned interest, and it keeps your "savings" outside of your checking account so you are less likely to spend it.

If you are confident you can manage your own savings, check your local credit unions. Many are offering good interest rates on their checking accounts. Mine gives 3% back on up to $25k. A few hoops to jump through, (direct deposit, debit card use 12 times a month, online bill pay used at least once) but most of them you do them already.

Hope this helps.

American Express Savings account has one of the top rates!

Go with Ally. Great interest rates, easy to setup online, 24 / 7 customer service via online and phone (no outsourcing), no minimums and practically no fees compared to traditional banks.

Honestly, savings accounts are pretty much a joke now, at least as far as interest is concerned. Don't get me wrong, it's good to save, especially at OP's age. He should put away a good nestegg for emergencies and start looking into possible investments (IRA/401k/etc.) for retirement.

But you should chose your savings account based on factors other than interest. Signup bonuses are great, and will likely pay you more in one swoop then you would make in interest over a decade. Other things to consider are fees, overall relationship with the bank, ease of access to account/money/etc., and things like that.

It's clear that the OP doesn't have much money, so whether he gets 0.01% or 1% APR will mean little. I have $10k in one savings account and I think I made $1.75 in interest last month.

So while savings (short and long) are good, don't forget about your debts! Paying off student loans, , credit cards, car loans, etc. is just as, if not more, important in many cases. Once you get a small amount in savings as a safety net, look at paying off things that have the highest interest rate against you first. It's better not to pay 5-20% in interest than make 1%.

A savings account for emergencies isn't a bad thing. I wouldn't put all your money here but enough to cover some basic costs if disaster strikes. Perhaps $500 or $1000 to start and then leave it alone.

I agree with ING and I would also look into your local credit union or Penfed (federal cu open to all US citizens)

Quote from StarNova : A savings account for emergencies isn't a bad thing. I wouldn't put all your money here but enough to cover some basic costs if disaster strikes. Perhaps $500 or $1000 to start and then leave it alone. I agree with ING and I would also look into your local credit union or Penfed (federal cu open to all US citizens)

I don't believe PenFed is open to "all US citizens". On the contrary, I believe it is restricted to various groups of people like Government employees. However, there are numerous "tricks" to qualify (I did) for those that don't meet the normal criteria. So while I imagine anyone could 'technically' join, it's not really supposed to be open to anyone.

Quote from phonic : I don't believe PenFed is open to "all US citizens". On the contrary, I believe it is restricted to various groups of people like Government employees. However, there are numerous "tricks" to qualify (I did) for those that don't meet the normal criteria. So while I imagine anyone could 'technically' join, it's not really supposed to be open to anyone.

Its not a trick to join. Its free for govt employees and everyone else has to pay a "membership fee" which is a donation.

Quote from nizzy1115 : Its not a trick to join. Its free for govt employees and everyone else has to pay a "membership fee" which is a donation.

Ah ok. I just clicked the "None of the above" options for qualification and see how you can donate $15-20 to become a member of some organization to qualify.

In my case, I signed up with some "trick" to qualify under one of the other options (I forget which), which didn't require a donation.