Savings Accounts are Pointless

After receiving my monthly statement from Citizens Bank and talking with friends, I would like to point out that savings accounts at banks that have physical presences are pointless. My Citizens Bank Basic Savings account pays me a whopping 0.25% APY. Also, if I don't keep at least $100 in my account, they'll charge me $2/month.

Compare that to my ING Direct Orange Savings account (money market account), which has no minimum balance, no fees, and pays 2.60% APY. It's pretty obvious which is a better deal. In fact, the only reason I have a Citizens Bank savings account is because when I opened my checking account they were running a special offer. If I set up a savings account and scheduled a monthly transfer of $10 from my checking to savings, they'd give me $25 after 3 months. After I get my $25 in April, I'm going to close my savings account.

If you are interested in setting up an ING Direct account, let me know. If I send you a referral you'll get $25 and I'll get $10. You may also want to take a look at Bankrate.com , which lists the highest yielding money market accounts.