Thursday, June 24, 2010 - 7:59 AM

Reward Checking, Savings Accounts And Cds - How To Choose?

If you want the best interest rates for your savings, all three should be considered, and all three have pros and cons. This Get Rich Slowly blog post has a good discussion of how to choose between these.

What's your strategy? Do you use all three? Do you use more liquid accounts in today's environment when there's the chance of higher interest rates in the next year or two?

KenBDG5,147 posts since
Nov 29, 2009
Rep Points: 117,067

1. Thursday, June 24, 2010 - 5:23 PM

I was heavily into Savings Accounts 3-4 years ago; then hopped to the high-rate Reward Checking Accounts due to significant rate drop for Savings Accounts. Since the RCA fund is liquid, I am always ready to change my investment style as the interest climate changes.

In general, it is not one vs. the other; one can take a combo of 2-3 options at the same time.

51hh1,036 posts since
Jan 16, 2010
Rep Points: 4,745