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Finally, A Break For Savers

Tuesday, June 28, 2011 - 9:03 AM
From SmartMoney.com
With yields on Treasurys at all-time lows and cash paying next to zero, some yield hunters are finding solace in a surprising place -- their checking accounts.

Criticized lately for high service fees and excessive ATM charges, checking accounts have suddenly become a haven for jittery investors seeking a safer return. According to a recent survey of 155 banks by Bankrate.com, 57 institutions now offer so-called high-yield or "rewards" checking accounts; twenty-seven of those banks make these accounts available to consumers nationwide. While the average yield on these accounts is 2.56%, down slightly from 3.3% last year, many institutions are paying 4% or more. That compares to 0.2% for the average money-market account and less than 3% for the 10-year Treasury note. "Checking accounts are still the best, highest-yielding place for federally insured liquid cash," says Greg McBride, senior financial analyst at Florida-based Bankrate.com. "It's a no-brainer."

Savers have responded by piling into such accounts. Deposits in so-called "rewards" checking programs offered by these mostly smaller banks and other financial institutions swelled to nearly $18 billion in June....

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WhataBummerWhataBummer413 posts since
Oct 15, 2010
Rep Points: 1,702
1. Tuesday, June 28, 2011 - 9:28 AM
SmartMoney finally got "a bit" smart after all these years:D
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51hh51hh1,462 posts since
Jan 16, 2010
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