Once the two most powerful words in the lexicon of saving and investing, ‘compound interest’ has lost some of its mojo in the low-rate environment of recent years. However, in the early 1980s, when DepositAccounts’ founder, Ken Tumin, was a child, its potential was awe inspiring. So much so, in fact, that it instilled within him a lifelong passion for maximizing savings.
RewardExpert recently spoke with Tumin about this experience, the resources he developed his company to provide, and how DepositAccounts can help today’s savers grow their nest eggs faster despite historically low interest rates.
Inspired by the Power of Compound Interest
“Around 1980, interest rates were really high,” Tumin recalled. “My parents purchased a 10-year CD with a 16 percent annual percentage yield, or APY, and over those 10 years, I watched as its value more than quadrupled. I really saw the power of compound interest, and I’ve been interested in CDs and deposit accounts ever since.”
While working as an engineer in the semiconductor industry, Tumin decided to turn his hobby of tracking bank interest rates and relevant industry news into a business. In 2005, he founded a blog named BankDeals. The blog has since evolved into the comprehensive DepositAccounts.com website of today and was acquired by LendingTree in 2017.
“I now work with a whole team under LendingTree to manage, develop and grow the DepositAccounts site,” Tumin explained. “LendingTree is committed to keeping the website one of the best deposit account resources on the Web.”
Unbiased Reviews, Ratings, Rates and Tools
Visitors to the DepositAccounts website will find a wealth of information on banks, credit unions and the deposit products they offer, including savings accounts, checking accounts, money market accounts, CDs and IRAs. Within each category, the DepositAccounts team has assembled information on current rates, proprietary health ratings and reviews.
You can search banks and credit unions by name or narrow your deposit account options using a variety of filters. Within minutes anyone can easily find an account offering a competitive interest rate that will enable faster growth of their savings.
Tumin offered a few tips to help new users make the most of their experience:
- Review the account’s interest rate history, not just the current rate offered. “Banks sometimes offer a good promotional rate for a few months to attract new customers and then lower the rate later so that it is no longer competitive,” he said. “To prevent going down that path, it’s important to review the account rate history.” You can find historical interest rate data within the details of each account reviewed on DepositAccounts.
- Don’t discount internet banks. While DepositAccounts offers a Bank Rates Map tool to make it easy for consumers to find the best rates at brick and mortar banks in their geographic area, Tumin urges consumers to consider internet banks as well. “The interest rate available on internet savings accounts is usually higher than the vast majority of brick and mortar savings accounts,” he explained. “It’s also really easy to link your brick and mortar checking account to an internet savings account and transfer money between the two. If you have more than $1,000 in savings, it can definitely be worthwhile.”
- Consider your short- and long-term goals. DepositAccount’s Where to (Safely) Grow Your Cash tool will help you choose from available savings accounts, money market accounts and CDs by factoring in how much you have in savings, your investment timeframe, and the level of effort you want to put in. “We’ll give you a list of deposit accounts to choose from based on those criteria,” Tumin said. “You won’t see a tool like that anywhere else.”
- Don’t forget about credit unions. “In the last 10 years, credit unions have become a lot more accessible and easier to join,” Tumin added. “In any local metro area, you’ll probably find at least 10 credit unions you’re eligible to join. They’re a good alternative to local banks and often offer lower fees and better interest rates.” DepositAccounts even maintains a regularly updated list of credit unions that anyone can join.
An Active Community of Dedicated Savers
DepositAccounts has been covering the savings industry for more than 10 years and has reviewed more than 12,000 banks and credit unions. Tumin is proud of his company’s not-for-hire approach when collecting and presenting information and of the following among dedicated savers the website has built over the years.
“We often get dozens or even hundreds of comments from our readers whenever we cover a bank or credit union with an exceptional rate,” he said. “They share their experience and we update our reviews with the relevant details. There’s a lot of back and forth that enables us to quickly understand the good and bad points of each new deal.” To date, consumers in the DepositAccounts community have contributed more than 125,000 comments, forum posts and bank reviews.
To learn more about the resources available at DepositAccounts or start your search for an account that pays a higher interest rate, visit www.depositaccounts.com.