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  • May 16, 2008 4:38 pm US/Pacific
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Online Banking Could Boost Your Savings Balance

SAN FRANCISCO (CBS 5) ― Most Americans aren't in the habit of saving money. In fact, our love of credit cards sent our savings rate into negative territory for the first time since the depression in 2005 and 2006, and it has barely recovered. 
But if you believe that stashing your cash under the mattress pays just about as well as a traditional savings account, you may want to think again. The website money-rates.com lists the best savings rates on traditional and internet savings accounts. 
Most of the big banks are paying .25% on checking accounts.

That's a quarter of a percent. For a family of 4, with a $1,200 rebate in the bank, that interest percent translates into a whopping earning of $3 after a whole year.
Smartypig.com is an on-line bank paying 3.90% interest on deposits of $25 or more. If we take the same $1,200 and deposit it in Smartypig at 3.90%, we wind up with $1,248. That is an extra $48 at the end of the year, and $45 more than what you would get with the checking account. The amount could be better, but it is already higher than what you would get with 1% or 2%.

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

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© MMVIII, CBS Broadcasting Inc. All Rights Reserved.