No. of Recommendations: 3
What a silly topic to fight about!



One of the things we've learned about banks and credit unions is that sometimes they offer yields that are above "market rates," as represented by other banks and credit unions or by Treasuries of similar maturities (T-bills in the case of Money Markets and Savings Accounts).

When it comes to things like 5-year CDs, if you can get yourself and extra 50 basis points by opening a new account at somewhere with a high rate, it is probably worth the inconvenience. You also know you are locking the rate in for 5 years.

The problem with rates on savings accounts and money markets that are out of line with competitors is they tend to change back to being in line once customrs have been attracted (so do longer CD rates, but once you've got yours it doesn't matter). So, if you want to find the best money market or savings account rates, you will probably need to do a lot of switching around.

The convenience versus best yield issue mostly depends on how much money you keep around in short term assets. 25 basis points on $10,000 is $250 a year.
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