I once read a detailed analysis (by one of the personal finance bloggers) on when it makes sense to move to a better rate. The main point was that while funds are transferred you don’t earn anything and the better rate has to compensate this loss.

In addition I personally think that the time and effort you spend moving the funds also has its price and only you know what it is. So it is really up to you to decide if you should go ahead and do it.

The convenience is a whole different factor and should be considered separately. I use Citibank for everyday banking since this is where convenience is for me. Then I have these other accounts (mostly CD’s) that I open once in a while when I want to take advantage of a promotion or to use a good rate.

I’ve kept my savings account at ING despite their seemingly-low rate because they transfer money to my checking account a lot faster than Etrade, which has a higher rate, does. I figure that’s a more important feature to have.

ING has slipped on their rates but I’ve still kept my savings account there because they transfer into my checking account a lot faster than Etrade, which has a higher rate. I figure that’s a lot more useful in cases when I need fast transfers.