Closing some bank accounts
Unlike some bloggers, I quit the rate-chasing game fairly early. I tried to keep up with rising rates at ING Direct, HSBC Direct, Emigrant Direct, Citibank and Bank of America. Along the way, I also had to open a savings account when I opened a new loan for my truck at an area credit union. Lastly, I already had a (poor performing) savings account at Bank of America (0.5% interest rate). That’s a total of 7 savings account.
Just like I said 6 months ago, “I can’t handle all these accounts!“. It’s simply clutter. So here’s what I did:
- Closed Emigrant Direct. I only had about $9 in there anyway
- Closed Citibank. I had about $100 in there, but the main reason I opened the account was to take advantage of a $50 bonus for opening the account
- Will close one BoA account. I’ll close the wimpy 0.5% account since it requires a $300 minimum balance and that money could be earning 3-4% more elsewhere.
- MIGHT close HSBC Direct. A friend talked me out of closing this account, for now, because it’s pretty competitive, but we’ll see
- Keep the BoA Money Market. Actually, this is where all our money is right now. It’s still competitive (but not the highest), and it’s at the bank with our checking and online billpay. It’s just easier to manage it at one location.
- Keep ING Direct. Even if ING isn’t competitive with its rates, I can earn up to $500 per year if I use up all my referrals. And you get $25 too!
- Keep the credit union account. It’s always good to have a credit union, even if you just have the account to be able to apply for their loans.
At least this will get us down to either 3 or 4 savings accounts, and reduce the number of online or print statements we receive. Unfortunately, since I waited to close them till 2008, I’ll still get 1099-INT forms next year for the little bit of interest I earned on each this month.
How many savings accounts do you have? Are you going to try to get rid of the clutter? Any reason I should have kept them all open?