Online High Yield Savings Accounts?

[j1232]

Over the years I have noticed the increase in companies offering High Yield savings accounts. recently American Express has started they're version of a High Yield Savings account with a .90% . . I have been using ING Direct but recently they dropped their interest reates to .75 and now Barcalys is offering 1.00% high yield along with ally bank and all the others.. . . I am soo confused as what to do? Which bank should I use for my savings . . even if they have the current rate how long would the rate last?

What savings bank would your use?

Do you use? Or any other thaughts or comments?

[Hum]

Maybe buy high rated municipal bonds instead.

Federal tax-exemption of municipal bonds. The interest income earned from most municipal bonds is exempt from all federal income taxes regardless of your tax bracket. This is the most significant benefit of municipal bonds and it is a characteristic unique to municipal bonds. Not even US Treasuries offer income that is free from federal income taxes.

• EXAMPLE: If you buy $10,000 worth of municipal bonds with a 4% coupon, the $400 you receive every year is tax-free.
  

Additionally, municipal bonds can be free of state income taxes as well.

[.bin]

Geeezus. I thought 4-5% in Australia for an at call savings account was terrible.

[.bin]

Additionally, One thing I've recently invested in is called MicroFinancing. My investment is part of a fund that invests in third world country's which provides loans to struggling business's. I choose an interest rate and a risk that I'm comfortable with and sign + fund clients. They then repay the loan back over 12 months in monthly instalments, but I reinvest the principal every 6 months and disperse the interest to a bearing account at my financial institution. I currently run a calculated 3% risk.

Example;

$1000 principal lended into South Africa at an agreed interest rate of 13%, Total repayment $1130.00. After 6 months I obtain $565, reinvest a loan to another party at $500, and disperse $65 for myself. I repeat this at the 12 months.