Variable rate vs fixed rate in bank account

what are the advantages and disadvantages of each in a savings account? which do you prefer and why?
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Posted: Tue, Nov 16 2010, 5:30 pm Post subject:

with a fixed rate - you know what you are getting, you can plan like that. there's no risk - (especially if your in an fdic insured account with less then $500K...)

with a variable rate - you can make more as the rates go up, or if the rates fall your interest amount will go down, so you can't plan that you will have x amount, but as the rates go up, and they should go up just from inflation etc... you will earn more. there is risk that if rates fall dramatically your rate will go down..

personally I go for risk, but that's what I do for a living... extra money in my investment accounts get invested in mutual funds and sell out as I need it.