Another good question spurned by fellow rate-chasers’ comments. We now have a lot of competition in the high yield savings account arena. So, a good question asked is “When it worth it to move your money”? This is because there may be a gap in between money transfers from Bank A to Bank B where your money will not be earning any interest, which could negate much of the benefits of moving. (Another good question is which bank or entity is earning money off the float.) Things to consider:
1) When does Bank A stop paying interest?
2) How long does it take to for the transfer?
3) When does Bank B start paying interest on your deposit?
With this information you could find out, for example, that it would take 30 days to make a rate difference of 0.25% APR worth a transfer between two specific banks. So if you think Bank A will raise the rates in 30 days, maybe it’s not worth a transfer. But if you only needed say 5 days to break even, it may be worth a shot.
Now, I haven’t done the research yet to figure all these things out. And #2 may vary. So I’m thinking a group effort might be in order. If enough people transfer a small amount of money from different combinations of banks, and report back, we can get some statistically valid (?) data that would be useful. We could start on Monday, so we can count business days more easily. We would also need to record which bank initiated (via a pull or push) the transfer.
Here are the banks I’m looking at:
Capital One 360
Presidential Premier Savings
I currently have an account at all of these except for GMAC bank. I haven’t gotten my HSBC ATM card so I can’t set up any external transfers at HSBC yet. Here are my current links:
1) ING linked to Emigrant Direct.
2) VirtualBank linked to Presidential Bank Checking (instant transfer to savings)
3) Emigrant linked to Presidential Bank Checking
Hmm… not very many. HSBC should have the ability to link with VirtualBank, Emigrant, and Presidential. This might be trickier than I thought.