Want Your Savings to Earn a Higher Rate of Return? Try Internet Banking

Doesn't it seem like the only impressive numbers we've seen this summer are the digits on the thermostat and the unaffordable prices of homes? Real estate has been excruciatingly hot for the past few years, but getting in the market now puts you in the high-risk category for a heat stroke if the market decides to cool off this year.

So if a real estate induced stroke doesn't appeal to you and the stock market's roller coaster ride gives you motion sickness, it's very likely that you as a health-conscious investor are sitting on a stash of cash collecting an anemic rate of interest.

Don't worry, you are in good company. Even investment legend Warren Buffet is having problems finding fruitful investments. Buffet admitted in Berkshire Hathaway's annual letter to shareholders to having ended 2004 with $43 billion in cash equivalents and couldn't promise much success in utilizing the money in 2005.

If Buffet doesn't know what to do with his billions, you are probably thinking that you have no chance of finding a great place to put your billions either. Ok, your trillions. I didn't mean to belittle your nest egg.

Where can you stick your cash while you wait for better investment times?

How about online? Yes, I know Internet stocks stole your money in 2000, but Internet banks are giving it back in 2005.

Unlike the Internet gold rush of the 1990's where web businesses were run by high school students, many of today's Internet banks are simply online divisions of safe and time tested brick-and-mortar banking institutions.

Take ING Direct for example. ING Direct is the online division of ING Group, a Dutch based financial institution which is among the top 15 largest in the world. ING Direct opened its Internet doors five years ago and currently has approximately $29 billion in deposits. That would make it the "YAHOO!" of online banks.

But another online bank may actually make you yodel, "yahooo" after you glance at their annual percentage yield. Internet bank Emigrant Direct offers 3.50% APY on its savings accounts. What does your big commercial bank give you? 0.50%? At that rate, you're not earning enough to beat inflation. Maybe it's time you joined the Internet age?

Emigrant Direct is the online division for New York's Emigrant Savings Bank. Although a relative newcomer to the online banking scene, when it seems like interest rates are leaden with lead, Emigrant Direct is usually the first to raise them. At this point, brick-and-mortar banks would need to raise their rates quite a bit just to catch up with Emigrant.

So if you find yourself not enjoying the lazy interest rates of summer, you may want to log on to the net and see how an Internet bank account may boost your return this year. The interest rate you get may just burn as hot as the heat wave hitting most of America.

Jon Galanty is a financial writer for eMoneyCentral.com. Visit http://www.emoneycentral.com to find out more about online banking and to get other great money tips.

---

Saving Money - Are You Doing Enough?

It is estimated that we, as consumers, waste an average... Read More

Do You Really Need the Power of Money Management Software?

I have been a loyal user of Quicken(R) for more... Read More

Make or Break Your Retirement!

The Prudential has dubbed those who refuse to leave home... Read More

Should You Borrow From Your 401(k) Account?

If you have a 401(k) account, it can be very... Read More

Check Facts and Figures

Are you a check fanatic? Don't worry, you aren't alone.... Read More

Saving Dimes Can Go a Long Way

On the other hand, there are those people who are... Read More

Strategies for Success

Holy Shenanigans! More STUFF?Loosing one's business due to lack of... Read More

Vacations Made Easy: Buying a Florida Investment Property

Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More

Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?

We have heard a lot about consumers' personal information getting... Read More

University: A Course in Personal Finance

Recent findings from the Educational Policy Institute indicated that the... Read More

Improving Your Financial Position

If you want money you need to learn how to... Read More

A Quck Lesson in Saving Money

Did you have a piggy bank when you were a... Read More

More Money? My Cup Runneth Over...But Im Still Thirsty

Most of us, especially those of us who have debtor's... Read More

Check Fraud and Verification

Before buying personal or business checks you should inform yourself... Read More

How to Choose the Right Bank for Your Online Business

You should thoroughly consider your business needs when selecting a... Read More

How to Save Money in a Grocery Store

Now there are ways to save money in the grocery... Read More

5 Steps to Healthy Spending Habits

Next to our physical health most of us are primarily... Read More

Car Donations and Used Car Donations

Car donations and used car donations are the way many... Read More

10 Tips to Make Sure Your Financial Budget Will Succeed

You've analyzed your past expenses, put them into spreadsheets, loaded... Read More

UK Graduates Looking Short-Term At Their Long-Term Financial Responsibilities

With almost two thirds of university entrants from England and... Read More

Budget Planning - Its Elementary My Dear Watson

Does it feel like you have to be Sherlock Holmes... Read More

Save Money on Gas

Gas prices have soared to unimaginable heights of late. Since... Read More

Organizing Your Finances - Thinking Outside the (Shoe) Box

If you're like most people, your personal financial records are... Read More

Im Broke, How Can I Afford...

I'm still amazed every time someone comes to me complaining... Read More

UK Parents Inactivity Harming Their Children?s Future University and Mortgage Savings

The British government at the beginning of this year officially... Read More

What is a Traditional IRA?

With a traditional Investment Retirement Account (IRA) you pay taxes... Read More

Personal Checks ? Extreme Benefits

Millions of people have a checking account and many people... Read More

Chex Systems ? Why Every American Needs To Guard His Checking Account With His Life

Most Americans have been brought up to be concerned about... Read More

Financing Collectibles for Fun and Profit

With the advent of the internet and especially auction services... Read More

Risky Business: You May Not be as Daring as You Think

I thought I was through with exams when I finished... Read More

Basic Bank Accounts Failing the Basic Needs of Consumers

The lists of bank and savings accounts that are available... Read More

Why Live Frugally

What is it about being frugal, why do it at... Read More

One Income Source Is Not Enough!

My personal opinion is that in today's new economy, it... Read More