Quick question:Online Savings

adaway · #1 (**permalink**) 01-22-2008, 05:59 PM

I am looking into different options for online savings. I noticed that for some options a rate is presented on the site and then in the fine print it indicates that the rate is subject to change at any time....

I am new to online savings so forgive me for asking this question, but is the changing rate a norm for online savings? I was under the impression that you can park your money there and the rate would be fixed.

adaway · #2 (**permalink**) 01-22-2008, 06:01 PM

Sorry, this was suppose to go the investing & banking section.

project15 · #3 (**permalink**) 01-22-2008, 08:05 PM

Yes, changing rates are normal. They normally go with the Fed's rate, so be prepared to see lower rates in the next few days due to the recent 75 basis point cut.

safari · #4 (**permalink**) 01-22-2008, 09:10 PM

If you want a guaranteed rate, you should consider a CD, but then you won't be able to withdraw that money until the CD matures.

adaway · #5 (**permalink**) 01-23-2008, 03:31 AM

Ok, thanks!
I will revisit the CD option and continue to research online savings.