Want Your Savings to Earn a Higher Rate of Return? Try Internet Banking

Does not it seem like the only impressive numbers we've seen this summer are the digits on the thermostat and the inaccessible house prices? Real estate has been extremely hot during the past few years, but entering the market now puts you in the high risk category of heat stroke if the market decides to cool down this year.

So, if a real estate-induced stroke does not attract you and the roller coaster attraction of the stock market causes dizziness, it is very likely that you, as a health-conscious investor, will be sitting in a stash of cash that collects an anemic interest rate.

Do not worry, you're in good company. Even investment legend Warren Buffet is having trouble finding fruitful investments. Buffet admitted in the annual Berkshire Hathaway letter to the shareholders that it had ended 2004 with $ 43 billion in cash equivalents and could not promise much success in using the money in 2005.

If Buffet does not know what to do with his Billions are probably thinking that they have no chance of finding a great place to put their billions either. Ok, your billions. I did not want to belittle your nest of eggs.

Where can you save your money while you wait for better investment times?

How about online? Yes, I know that Internet stocks stole your money in 2000, but Internet banks are returning it in 2005.

Unlike the Internet gold rush of the 1990s, where web businesses were directed by high school students, many of today's Internet banks are simply online divisions of proven and safe brick and mortar banking institutions.

Take ING Direct for example. ING Direct is the online division of ING Group, a Dutch financial institution that is among the 15 largest in the world. ING Direct opened its Internet doors five years ago and currently has approximately $ 29 billion in deposits. That would be the "YAHOO!" of online banks.

But another online bank can actually make it go down, "yahooo" after taking a look at its annual percentage yield. The Internet bank Emigrant Direct offers 3.50% APY in their savings accounts. What does your large commercial bank offer you? 0.50%? At that rate, it is not earning enough to beat inflation. Maybe it's time for you to join the Internet era?

Emigrant Direct is the online division of the Emigrant Savings Bank of New York. Although it is relatively new in the online banking scene, when it seems that interest rates are loaded with lead, Emigrant Direct is usually the first to raise them. At this point, the brick and cement banks would have to raise their rates a little to catch up with Emigrant.

So, if you're not enjoying the lazy summer interest rates, you may want to log on to the network and see how a bank account on the Internet can boost your performance this year. The interest rate you get can burn as hot as the heat wave that hits most of America.

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