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Rate Chasing

If you read PF blogs, you have probably heard talk as of late about the newly rebranded Ally Bank (formerly GMAC).  The reviews seem positive, but what really grabs attention are their rates.  I believe they’ve got the highest interest rates around right now, and I’m finding it very tempting to open up an account and see what it’s all about.

I’m trying to control those urges, however.  I always said that I wouldn’t chase rates.  I started out with an account at ING Direct, and while it remains my main banking institution, I have also opened accounts at HSBC Direct and FNBO Direct.  I opened the HSBC account to try it out, and decided to check out FNBO when I was hunting down good CD rates.  I’m probably going to move more of my long term savings over to one of those two banks, but I haven’t decided which one yet.

As I update my monthly net worth, I sometimes find myself wondering if perhaps I have too many accounts.  I have accounts at those three banks (and numerous sub-accounts at ING, though I very much like that feature) as well as one at a local brick and mortar bank.  For the most part, there aren’t any transactions on the other accounts, just continually growing savings, but I don’t want to spread myself too thin.  Unless I was socking away some huge amounts of cash, I don’t know that it would be worth it to constantly move money just to get that extra .25%.  Sometimes, simplicity is the best way to go.

That said, I’ve got an ING CD due next month, and I will defintely be scoping out rates and potentially moving money to another account, but not opening a new account.  I think three online accounts is more than enough.

Do you rate chase?

3 comments to Rate Chasing

  • Michelle

    Another blogger (can’t remember who – maybe Madison at My Dollar Plan) has something like 98 different accounts, so you’re not maxed out yet!

    I have a local credit union, a big bank, and a national specialty on-line bank with various accounts at each – checking & 3 savings (tagged for various goals) & nice-rate CDs (still at 3 to 4%!) at the Credit Union; my mortgage is at big bank, so I direct deposit 1/2 payments per pay period there; and at USAA I have my off-site/not-easily-reached savings (and a checking that I never use). This is a total of 10 accounts (if the cds are in one ‘lump’) and sometimes I also feel a little overwhelmed. I rate chased to USAA (actually for a $100 account-opening promo, but I’d been looking for an on-line bank anyway), but I’m at my limit for what I want to track. If my credit union were to drastically lower the interest rate on my cd’s

    In other words, whatever works for you!

  • Michelle

    continuing my aborted thought up there> if CU lowers the rates on my cd’s I would probably do a little searching, but they are laddered and serve as my major emergency fund, so I’d be reluctant to move them to a bank that I couldn’t access easily…

  • nope, don’t have the patience or time really to chase rates 😉 I use USAA for all things possible (have over 13 accounts there) making it super easy to track and manage, so even if i *could* save a few dollars just by switching, it wouldn’t be worth it to me.

    def. an interesting topic though.