Best Bank or other way to earn high rate of interest?

Question

I want to park some money and want to know the best place to put it.

1. If I leave it in a savings account (Bank): which is the best one (best = highest interest rate APR)

2. The market is volatile now so I am hesitant to invest in mutuals- Are there any other "relatively safe" options that will yield more than a savings account?

I would like to have some liquidity/access to the $ in the next year or so.

Answer 1

There is one investment that is the safest of all - US Treasuries.

T-Bills can be bought in increments for $1000. min.

You can buy a T-Bill for 30 days to 1 year, and T-Notes ($25K min) for up to 30 years. Would not go out that far.

US Treasuries are guaranteed by the US Gov and have no limit on the guarantee.

In contrast, the FDIC guarantees $100,000 in banks on bank related products such as deposits and CD's.

US Treasuries are federally tax exempt. CD's you pay state and federal income tax.

The rate on US Treasuries will be lower than CD's because of the non federal income tax and better guarantee.

Be careful on seeking high interest rates on CD's. Higher than average CD rates often means the bank is in financial trouble.

Cite: Indymac, and all the banks still in business.

On-line banks often have the min capital required by regulators, and I would not touch these. If you do go with some obscure name bank, I would first contact the OCC (Office of the Comptroller of the Currency) to verify that they are a FDIC charter bank.

http://www.occ.treas.gov/Mail1.htm

Answer 2

Tax Leins give a high interest rate VERY high. Only its very hard to get them and you really have to know what your doing.

Answer 3

Answers:

1) Typically, internet-linked savings accounts will give a better rate. One such account is e-saver from Standard Chartered. Maybank has one too but I can't remember the name.

2) Don't even think of investing in mutual funds. The sales charge is enough to put you off by a few months at least. Depending on the amount, there are many safer options you can consider. Some of them may be as short as 1 month to 1.5 years. These are not the same as those you find in the banks where the products can hold your money for about 5 years.