5% interest savings account.

**cheappearls** · 08-04-2007, 01:04 PM

hsbcdirect.com

My mom told me about this and I signed up today. She has a credit card through this company too and signed up for her own savings account this last week.

It's 5.05% APY and you only need $1 to open an account. Can't really beat that since most places need $100 to open an account and you don't get close to that interest rate. Just passing it along.

**starsapphire** · 08-04-2007, 02:16 PM

I've had my online savings account with them since February, their transfer time is kinda slow but I've had no problems otherwise. I have the majority of my EF in there. I've already made over $41 in interest! Lets hope they don't lower their interest rates anytime soon.

**FrugalMomof3** · 08-04-2007, 04:24 PM

I am currently with Citibank, while there interest rate is quite impressive it isn't 5% but it's close and their transfer time is 2-3 days... not bad but I might just have to check out HSBCdirect.com, do they offer a debit card/check card?

**yonksgirl** · 08-04-2007, 04:32 PM

If you have money that can be saved for a long time you shlould look into mutual funds. In the last 60 years they have averaged 12%. Say you have 2,000 that you invest at the age of 20 and the intrest rate is 3% at the age of 68 you will have about 8,000.....but take that same 2,000 at 12% and in the same amount of time it will be about 524,000.

**babymakes5** · 08-04-2007, 05:15 PM

I would also recommend mutual funds or money market accounts if you are looking for great return. Your bank should have a financial advisor that you can see for advice, free of charge.

**starsapphire** · 08-04-2007, 08:22 PM

Originally Posted by yonksgirl

If you have money that can be saved for a long time you shlould look into mutual funds. In the last 60 years they have averaged 12%. Say you have 2,000 that you invest at the age of 20 and the intrest rate is 3% at the age of 68 you will have about 8,000.....but take that same 2,000 at 12% and in the same amount of time it will be about 524,000.

I'm not there yet but its definitely something to think about in the future.

**FrugalMomof3** · 08-04-2007, 08:29 PM

I agree, something to think about in the future for me too!

**Edna_E** · 08-06-2007, 05:28 PM

Thank you! For those of us who are just starting to build a savings account, this is an excellent resource. Often, discussions of saving seem to assume that one STARTS with $5000 (or some other inconceivable figure for someone just beginning to save).

**babymakes5** · 08-06-2007, 07:45 PM

We have our mutual funds and money market accounts through American Funds. We set it up through our local bank. While both required minimum deposits, you can get them waved by doing a direct deposit. We have $1225 deposited directly from our checking account once a month. If you are using a traditional savings account, it is worth it to visit with a financial advisor at your bank an look at investments; and money market accounts are very safe.