CREDIT & MONEY MANAGEMENT


Where to Park Your Cash Now

Money market funds are paying next to nothing, and a rate of 1% on any bank product is good these days. Still, you need a place to stash your cash. We’ve rounded up the best-yielding accounts, all of which are insured by the Federal Deposit Insurance Corp. or the National Credit Union Administration up to $250,000.

EverBank requires a $1,500 balance and guarantees that you’ll earn 1.01% on up to $50,000 for the first year in its money market deposit account. Barclays pays 1% interest on its online savings account, with no minimum deposit.

You could lock in a rate with a one-year CD. Doral Bank is paying 1.15%, with a $1,000 minimum. CIT Bank requires a hefty $25,000 and is paying 1.10%.

Checking accounts at community banks and credit unions offer the best rates. The catch is that you may have to live within the bank’s service area. Plus, to qualify for a high-yielding checking account, you usually need to bank online; have one direct deposit, bill payment or automated (ACH) withdrawal each month; and use your debit card for purchases ten to 12 times a month (ATM withdrawals don’t count). The bank generally caps the amount on which it pays the rate at $10,000 or $25,000.

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Two credit unions that anyone can join offer attractive yields: Lake Michigan Credit Union pays 3% on balances up to $15,000 in its Max Checking account. And Connexus Credit Union pays 1.75% on its Xtraor­dinary Checking account. To find more high-yielding accounts, head to www.checkingfinder.com.

This article first appeared in Kiplinger's Personal Finance magazine. For more help with your personal finances and investments, please subscribe to the magazine. It might be the best investment you ever make.

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