Six months ago, I opened a savings account at a bank 60 miles away which was offering 5.12% APY. The idea was to put the money just far enough out of reach so as not to touch it.
Two months later my community bank offered a great new account (see post below re: 5.61%), so I consolidated most of the money back into checking. It felt peaceful to have the majority of my money together in one account again, although I left the savings account open (albeit minimally funded), to take advantage of either account's better interest rate in the future.
Fast forward through the recent interest rate drops, and the savings account has edged ahead, still offering 4.0% APY (for now). I'm debating whether to move the bulk of my checking back. I'm sure as soon as I do, the interest rates will fall again.
I realize I'm obsessing over a difference of 0.18%, but this has become my passion lately.
UPDATE: Today the savings account rate has dropped to 3.85% APY. I'm glad I refrained from transferring out the money.
Bank Rates
February 3rd, 2008 at 11:20 pm
February 4th, 2008 at 12:09 am 1202083794