Finding Local Banks With the Best Rates

In the words of Warren Buffett, “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1.”

Savings rates have been so low that putting your money under your mattress has nearly the same yield. But, a little something is better than nothing, so today we look at different savings rates, as well as possibly saving some money on credit cards.

I compared all savings vehicles from 0-60 months at local banks (one is in Teaneck, but it was a standout).  

A quick primer: Certificates of deposits (CDs) require a minimum balance and the money is generally inaccessible for the length of the CD, unless penalties are paid, whereas money markets, checking accounts and savings accounts provide constant access to the money (although criteria such as minimum balances may need to be maintained), however, rates are generally not set and fluctuate.

Savings/checking/CD rates

The average rates today are: .62 percent money market account, .51 percent checking/savings, .95 percent 1-year CD.  So, less than 1 percent across the board. If you want to make a little money on your savings, it definitely pays to shop around these days. Luckily, I’m willing to do the work for you.

Since rates are so low, I grouped savings, checking and CD rates together to find the best options. Bank Around is a great site, if you want to do additional research.

3.1 percent-APY-NVE Bank (1505 Teaneck Rd, Teaneck) 72-month CD, with a $1,000 minimum balance
2.51 percent-APY-Kearny Federal Savings (339 Main Rd, Montville or 267 Changebridge Rd, Pine Brook) -balances up to $25,000 via high yield checking (max $25,000 balance).
2.5 percent-APY-Hudson City Savings Bank (240 Baldwin Road, Parsippany)- for a five-year CD, with a $500 minimum deposit)
2 percent-APY-Valley National Bank (120 Baldwin Rd,, 800 Route 46W, or 320 New Rd., Parsippany) -36-month CD, with a $500 minimum balance
1.76 percent*-Garden Savings Federal Credit Union  (129 Littleton Rd, Parsippany) flex rate CD (must meet qualifications to become member)- a three-year CD, *but you can exercise a one-time option to obtain a higher rate, if available during the term of your CD
1.25 percent-Hudson City Savings Bank (240 Baldwin Road, Parsippany) for an 18-month CD with a $500 minimum balance)
1.25 percent-APY-Valley National Bank (120 Baldwin Rd., 800 Route 46W, 320 New Rd., Parsippany) 24-month CD, with a $500 minimum balance.
1 percent APY-Garden Savings Federal Credit Union (129 Littleton Rd., Parsippany; must meet qualifications to become member)- for 12 months

Balance Transfer

If you’re carrying a balance on any of your credit cards and are paying any interest, it’s worthwhile to consider transferring to a 0 percent interest card. There are a number of cards available, so this is only a sampling—you can find additional information here.

0 percent until August 2012—Capital One Platinum Prestige Credit Card, no annual fee.
0 percent on new purchases—BankAmericard Cash Rewards Visa Signature Card-Get a $50 statement credit after making at least $100 in retail purchases within the first 60 days, 3 percent cash back on gas, grocery and drug store purchases for the first six months and 1 percent on all other purchases.
0 percent for 21 months—Citi Diamond Preferred Card, no annual fee
0 percent for 12 months on balance transfers & 0 percent APR for six months on new purchases—Chase Freedom Visa—$100 Bonus Cash Back + 0 percent Intro AP, no annual fee

Now, if you have money earning less than the returns listed, I hope you’re inspired to get out there and look into some of these deals. Conversely, if you’re paying high interest on credit cards, I hope that you consider swapping cards.