Bank Rates

We have dealt with the same local bank for over 20 years. We have both a checking account and a passbook account with them. We actually have a little passbook that we present when we make a transaction.

We are careful to keep the checking account low as it pays less interest. We just transfer funds out of the savings account as needed. I used to do this over the phone but now it's so easy on line.

I am embarrassed to tell you I discovered the other day that the passbook account makes all of 0.4% and the checking is always half of that! I think we need to consider another type of account with that bank.

If we parked $10,000 there for things like real estate taxes, vacations, emergencies or gifts, it would earn a whopping $40 or $3.33 a month.

If we parked it in our Vanguard MMF is would make close to $460 annually or $38 a month.

I think I'll talk with a banker next week.

'til later