Competition: Savings Rate

If you have some cash that you donot want to invest in stock or bond, this is a good time for you because a competition among banks is brewing up to catch the attention of your cash at hand.

HSBC bank has boosted the current APY to 4.80% for all existing and newly opened savings accounts. The rate would be valid until April 30th and then will come back to its usual rate which, until last week was at 4.25%. The minimum deposit is only $1.

As our readers will remember, last month ING Direct bank made a similar announcement calling it 'Winter Save Up Sale' that earns you 4.75% APY on new deposits to the bank's Orange Savings Account. This interest rate would be offered to all new Orange Savings Accounts opened by new ING Direct customers or to all existing Orange Savings Accounts belonging to current customers. The interest rate would be valid for any amount (no minimum) deposited any time until April 15, 2006 – the Sale Period. After April 15, 2006, all the money in your account will earn the current APY at that time [at present which is 3.80% for old deposits if you had account in that bank].

We feel this is a good way to put your money to work with lucrative rates and enjoy high yield and security of your cash, while always getting access to it. Here are some more banks offering more options for you:

PayPal.com money market account currently has a yield of 4.38% with no minimum (not FDIC insured though). But remember starting March 1, Paypal will start taking out a 0.25% management charges out of the fund and the yield at that time would reduce by the same percentage.
Last week Emigrant-Direct's rate (which was leading until recently) for savings account also was increased to 4.25% with no minimum.
MyBankingDirect is giving 4.30% in Money Market Account with minimum deposit of $5000.
MetLife is giving 4.00% in its Money Market Account with minimum deposit of $25000.
AmboyDirect is probably trying to give high interest but its conditions (e.g., initial $5000 earn no interest, etc) are so complicated and confusing that we felt it's better to avoid it. If you wish to try to understand what they are trying to say, please check it yourself.
[Note: MyDollar has no connection whatsoever with the above-mentioned banks. We are giving such information only because we think this would be useful to our readers]