in Personal

Why dont more people have high yield savings accounts?

I know Im not the first one to mention this (as I see the topic at least once a week in the blogsphere), but why doesnt everyone have an online high yield savings account? I have one with ING and recently started another with HSBC Direct. Now I know some banks require you to open a checking account that may include additional fees – but the two I just mentioned (as well as a third, Emigrant Direct) dont charge any fees at all for a basic online savings account. Its just amazing to me how many people are more content to let money sit in a standard checking account instead of earning 4-5% in interest on the same money. Sure – it takes a couple of days to move the money around so you have to plan ahead slightly (HSBC even gives you an ATM card if you want one to make this easier) – but you get 5% interest on your money instead of 0%. It just seems like such a no-brainer to me – I know some people simply dont know about the interest rates and others will say they dont have enough to save right now. I believe the first excuse is semi-valid for those that arent really into personal finance and the second excuse can certainly be a problem sometimes. Beyond those two excuses though, I just dont see why people dont do it. I have several friends that know these accounts are out there, they have the money to save, they have the desire to save, but they still dont open the account – I just dont get it. Plus, ING gives you a $25 bonus if you just open an account with $250 or more (youll need someone with an account already to send you a link – otherwise you wont get the bonusplus it gives the other person $10 too so its a win-win – if you dont know anyone, e-mail me at and Ill send you one). HSBC will give you a $25 Best Buy card if you sign with them (I didnt do this deal, so I dont know exactly what the requirements are for it, but Im sure its simple too). The point of all this is that now is a great time to get started saving – the rates are great (and FDIC insured usually), its simple to do, and you can get a bonus with 2 of the three accounts these days. So, why not give it a try?