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Is Rate Chasing Worthwhile?

Friday, May 14, 2010 - 8:18 AM
Another blogger argues against rate chasing and recommends just sticking with a competitive internet bank. Trent at The Simple Dollar lists several downsides to rate chasing including the extra time and the added risks of identity theft.
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Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,651
1. Friday, May 14, 2010 - 2:00 PM
I think that in general, if you don't want to deal with the restrictions of reward checking accounts and stick with just online savings, the mere .5% change in rate is not worth it.

Take SmartyPig for an example, they already sent me 4 emails about impending drop in rate from 2.01% to .5%. That alone is enough to get me moving to another bank with at least 1.2 % and keep the remaining balance below limit @ SmartyPig to earn their 2.15% rate.
1
ThunderRiverThunderRiver1 posts since
May 13, 2010
Rep Points: 3
2. Friday, May 14, 2010 - 5:07 PM
If you don't have that much in the account moving it yields you only "chump change".  If you have a six dollar figure to invest, the tenths of a percent difference is significant.  It helps to reduce the overall debits from your net asset figure.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,776
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