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No Interest Savings Account

By Carmello on February 27, 2012

No Interest Savings Account

No Interest Savings AccountWith interest being as low as it is, no interest savings accounts almost make sense. Think about it, if you have $2500 balance in your saving account and you are earning .8% on it, that’s only $20 a year. It might not even be worth the tax paperwork!

I however have a no interest savings account, but not my choice. A while back when I refinanced my house I had to open an account to view my mortgage online (the one downfall of my bank). I was kind of bummed about it, but the bank teller told me “If you open an account today, you get $50 free.” So I opened an account with a dollar.

My $51 savings account just received it’s first interest adjustment, which is at .146% a year or about .0122% percent monthly.  My interest earned in the last month was $.006222. That is right,I didn’t even earn a single penny! This account does have checking by the way, but it was advertised to me as a dual savings/checking. I’m well aware that I could be getting about about .8 to 1% on a good online savings account, but I have no interest in taking the time to set it up, because I keep my savings and checking accounts very lean.

I wonder if I can ask my bank not to mail me a paper print out and just deposit the postal into my account. Stamps are going for $.45 which would be about 10.59% a year if they would just deposited the postage money into my account (since apparently they send these monthly). I also have to believe you can factor another $.10 in paper, ink, envelope,  and someone physically handling this paper. That puts us up to 12.94% APY return.

Now I realize they would never actually do something as stupid as deposit the ink, paper, postage, and handling money into my account – but do you think I will earn $.01 next period since I earned $.006 that wasn’t realized this period? Do I even want to earn it? I am potentially look at about $.07 in interest for the year. I can’t believe this bank doesn’t have a policy to not issue statements for accounts under a certain amount. What a waste of resources.  It is possible they are forced to send out statements by other regulation, but that’s just as sad.

I would rather not earn interest on this account, keep your $.07! I don’t want to have another form to report on my taxes. Also, please stop the earth from making a sadface and save a few trees.

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