Wants a higher rate of interest

Zoomer | January 1st, 2006

Q – I have very little disposable income, and no savings of any kind. I am looking for is a place to store small amounts of money ($500-$1500, if I can ever save that much at one time) with the ability to get access to my money. I have opened an Investment Savings Account with an on-line bank, but I want a higher rate of interest. Where would you start in a situation like this? – D.W.


A – We’d all like to earn higher rates of interest on our savings (but of course not pay higher interest on loans and mortgages). But the reality is that rates are very low right now, even though they are starting to edge up. So don’t expect much.


You didn’t say which bank you are dealing with. ING Direct is currently paying 2.5% on their Investment Savings Account. They’re usually at or near the top level for savings account rates.


You can get more if you’re willing to lock in your money. The same company offers one-year GICs at 3.1% and two years at 4.25%. But if you insist on immediate access to your cash and no risk, you’re not likely to find anyone offering more than 2.5%-3% right now. – G.P.