QUOTE(schumia @ Jun 12 2005, 11:28 AM)
How to correctly make the decision and what are the factors one should consider?
You want to have always the best rate, you may consider opening accounts in several banks that offer top rates and, then, move funds from one bank to another chasing the best rate. My observations suggest that most banks do not offer the best rates all the time. At one moment, ING Direct offered the best rates, now there are > 20 banks that offer better rates than ING Direct. So you may spend a lot of time trying to find a bank with best rates and, most likely, its rates will not be the best in several months.
If you do not want to spend time on getting absolutely the best rate or are not comfortable with having too many bank accounts, you may want to try to research history of bank rates and choose a bank that offers consistently high rates. ING Direct, Virtual Bank, UFB Direct, Emigrant Direct have been consistent in offering top rates of savings accounts. I have copied my list of best rates to MSN Online Banking board for quite a while. You can see past rates of many banks in these threads: http://groups.msn.co...ID_Message=9574http://groups.msn.co...D_Message=12341