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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.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
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.
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.
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,951