Credit Cards Center Credit cards from our partners
Reply
Frequent Contributor
Posts: 496
Registered: ‎11-13-2012

Interest Confusion

Regarding banking, if I can get a 1.0% savings account, why would I put money in a 12 month CD that yields similar interest?  What am I missing here?  For that matter, what's the purpose of a lower-APR CD?  That seems even crazier but I could be missing something.


GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev



Regular Contributor
Posts: 223
Registered: ‎10-25-2010

Re: Interest Confusion

Other than the interest rate being guaranteed for the term, I've got nothing.

Most times when I see savings accounts with APRs that are competitive to CDs its for a specified tier (amount of money) - which honestly sounds a lot like a CD without the early withdrawal penalty.

Starting Scores: 667 EQ 09/2013 | 682 TU08 01/2014 | 689 EX 06/2014(via AMEX CLI)
Current Scores: 667 EQ 09/2013 | 705 TU08 06/2015 | 699 EX 06/2015(via AMEX CLI)

AMEX BCE $12.3K | AMEX Zync NPSL | Cap1 Quicksilver MC $3.9K | NFCU Visa Signature cashRewards $20K
NFCU NavChek $15K | Target Visa $5K | Comenity VS $6K | Walmart $4.5K
Frequent Contributor
Posts: 496
Registered: ‎11-13-2012

Re: Interest Confusion

Yeah, I understand the locked in APR.  But Barclays online savings is 1.0% w/ no fee/no min.  Ally is right behind that and so is AMEX for that matter.  Weird.  Maybe in a former time there was an advantage over savings accounts, but today I can't see locking up the money for the same APR.


GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev



Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.