This transcript is automatically generated
-- Greg McBride senior financial analyst for Bankrate dot com joins us now so great why online savings accounts is a good option.
Well at an environment like this actually people are still preferring to keep that money accessible they don't -- -- be rolling it over into another and it CD necessarily have that money tied up.
Investors are still very risk averse.
-- -- the place that they're -- opting to keep that money isn't something that's is -- FDIC insured.
But they can still get that money at a moment's notice and in the online savings accounts are really head and shoulders above what you're gonna see elsewhere.
Certainly better than what you're gonna get in money funds and there's there's a -- premium -- shopping around we're seeing the yields top out now just about the 1% mark a little bit above.
And while that's not gonna blow anybody's hair back it's about ten times what you're gonna get -- -- just walked across street and take your standards and all savings account to bank across the street what.
Is that -- this lack of overlap.
I mean what what makes the difference between going to in my corner bank and somehow get my money to become line.
Yet Tracy what we see is that debt banks that are marketing themselves via the Internet and they can expand their market plays greatly -- and reach a national audience very cost effectively.
And it's a lot cheaper way to raise deposits than it is the same make a bunch of expensive acquisitions or go out -- build a bunch of branches and look even in this environment.
Pay 1% on savings accounts.
That is still very low costs deposits and low cost deposit so that's like oxygen to a financial institution.
Are there any other kind of low risk ways to find higher interest rates out there.
While you if you look at something like -- high yield checking account where can use your debit card on a regular basis that's another way to boost your rate of return.
But the bottom line is that you would significantly -- the rate of return you're going to get -- gonna have to be comfortable taking some rest whether it's dividend paying stocks are riskier bonds.
And with investors still very risk averse that means that they're gonna have to get accustomed to this environment where 1% may be the top of the heap on risk free investments.
Picnic at about money to an online account -- -- from my current checking how to let me the transfer.
A couple different options here I mean you can set up the account.
Online take it's not ten minutes or so right from your desktop and you can actually link -- to the checking account that you -- your current banker credit union.
And move the money online you can also do that not only for that initial deposit but going forward anytime you need money it's really only a couple clicks away.
You have the option of mailing a check is well if you prefer it's very interest that you may not get the best -- -- -- a lot better than many other options Greg McBride without Bankrate dot com -- thank you so much intact I.