A new savings account

open signI’ve been kicking around the idea of finding a new savings account with a higher interest rate. My Capital One 360 savings has been my work horse for well over 10 years (even back with it was ING Direct) and I’d accepted the fact that it wasn’t earning much money. Having money stashed in a non-invested account that I can quickly tap for emergencies and the unexpected is important to me. But that doesn’t mean I shouldn’t try to eek a few more bucks out of it!

The total in my savings account is now near the $10,000 mark and even a small interest rate bump will make a difference over the next few years. I figured it was worth my time to investigate further. I was concerned that I’d need to temporarily lift my credit freeze when applying for a new account, the cost of which would eat up a significant portion of the increased revenue. In my research, I learned that no credit check would be needed! Nothing to stop me now!

Please note that none of the links below are affiliates. I’m just sharing my experience.

Being the podcast junkie that I am, I hear lots of interviews and ads for financial tools and websites. Stacking Benjamins took me to Magnify Money, which is a site built exactly for my purpose of finding a better savings account. It didn’t take long to decide on a Salem Five Direct eOne Savings Account, currently offering 1.10% for the rest of 2016.

Old rate: 0.75% = $75 per year
New rate: 1.10% = $110 per year

I consider that good enough to warrant my additional time. I assumed the whole process would be simple and take only 10 minutes. Unfortunately, it ended up being close to an hour over the course of a week.

  1. Filled out an online application.
  2. Received two small deposits to my checking account from Salem Five.
  3. Went to their site to verify the amounts of those deposits (less than $1).
  4. Printed and snail mailed a signature card to them (required).
  5. Applied to access my account online.
  6. Received a secure message to finish this online registration. In order to open and reply to this message, I had to register for an “envelope service”.
  7. Received another secure message, had a code texted to me that I entered on their site to finally access my account online.
  8. Received a phone call from one of their reps that I checked a wrong box (seriously?). Got another secure message with a new signature card that I was able to sign and send electronically.

And I am now the proud owner of a new savings account! Was all of this worth the $35 bucks (actually less since it’s almost April)? Not sure. I’ll have to see what happens to the interest rate in 2017 and re-evaluate whether another switch is in order.

(Image: iguanajo)

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