Tempting Isn't It

photo by kspoddar

So might be this:

• Save at Washington Mutual and earn 3.75%


• Open an savings account at HSBC Direct to get 3.50%


• Try saving at WT Direct to earn 3.26%

Diversifying your savings to accounts is a good strategy for keeping your money safe and even earning higher interest rates. But do be wary of high earnings advertising. Each of these temptations has a downfall.

this one is loaded with unnecessary calories

Wamu's 3.75% is only offered online and requires an active checking account

HSBC's offer is temporary rate until September 15th.

WT Direct's offer drops to 0.50% if you don’t have a $10,000 balance after 60 days.

Still none of these temptations will kill you, they just carry some risks and maybe even unwanted extras. That chocolate yummy may give you heartburn, a sugar-caffeine buzz and a few extra around the middle. A high-interest temptation could lure you in to an unstable financial situation.

More banks are in trouble of going down and the FDIC publishes a quiet list on their website. (NCUA, the governing body for credit unions also has a website and publishes such news. While credit union's can and have gone down in the past there hasn't been much of this happening lately.) There have been murmurings that WAMU is in trouble. During tough times financial institutions will offer higher deposit rates to attract deposits. It's when those rates are amazing that you need to be suspicious.

So the moral of the story is that you need to know what you're getting into. Just like you should know if the lake is shallow before you dive off the rock, you need to check out your financial choices. Get a copy of their annual report or earnings profile, do a Google search and read the fine print before opening an account (that's where the you must do this to get that is hidden).

Keep your money safe by remembering the government insurance limits and knowing the stability of your financial institutions. Don't let your wants control your needs and remember too much of a good thing isn't always best.