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moving money to new savings account - lost interest?

S

Special K

Diamond Member
I am debating whether or not to move my money to a different savings account paying a higher interest rate. When they ask how I would like to fund the new account, it says it will take 3-5 days for the ACH to clear and the funds to be deposited in the new account. During that 3-5 days, will the funds be still be in my old account earning interest or not? Does this vary from one account to another?
 
If the new interest rate is at least .1 % higher, you'll make the lost interest up in less then 6 months. If it was from 3% to 3.5% (like moving it from ING Direct to HSBC Direct), you'd make the difference up in less then a month.
 
Originally posted by: sciencewhiz
If the new interest rate is at least .1 % higher, you'll make the lost interest up in less then 6 months. If it was from 3% to 3.5% (like moving it from ING Direct to HSBC Direct), you'd make the difference up in less then a month.
Click to expand...

Well I've already used the ultimate rate chaser calculator.

I also made a more customized excel spreadsheet that reflects how I might actually use the account over the next several months - i.e. new deposits and withdrawals. It looks like I would stand to gain about $30 after tax by next April if I move all of my money to the new account. This assumes there are no days of lost interest.

If my money is not earning any interest for 5 full days, that is about $4.50 of lost interest, which puts this right on the edge of not being worth the hassle. Plus I don't know what interest rates will do between now and then.

Meh, maybe this isn't worth the trouble for ~$25.

Oh well, at least I now have an Excel spreadsheet template that will make this much easier in the future.
 
For some of that 3-5 days, your money might be earning interest in both. Your new bank is telling you that until the transfer clears, you will not be able to withdraw all/some/any of your money.
 
Originally posted by: sniperruff
1) open scottrade account
2) buy shares of FNM
3) profit!
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FNM, are you an idiot. WFC or USB .... Why? Banks are harder than sh!t to analyze these days. So you better be piggybacking a financial stock guru named Warren Buffett.

With FNM, you might as well but everything on a single spin of a roulette wheel
 
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