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| trixiezzz |
 Posted: Fri Feb 11, 2005 12:25 pm Post subject: Where should I park 'emergency' funds? Bank? Mutual fund? |
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Investing Manager
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| These interest rates are so dismal that I hate to keep ANY money in the bank. So where can I get a good return for the money I keep on hand for emergencies? |
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| Blueberry |
| Posted: Sat Feb 19, 2005 3:12 pm Post subject: |
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Investing Associate
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| Dismal as the bank rates are we keep some cash in a savings account for those immediate emergency situations when you need cash fast from an ATM for whatever reason. Not going to earn us a bunch of money but we have it on hand always..just in case. |
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| fladoozle84 |
| Posted: Sun Feb 20, 2005 12:36 pm Post subject: |
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Investing Sr. Associate
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| Any other better place for it? |
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| 1MegMeg |
| Posted: Sun Feb 20, 2005 3:16 pm Post subject: |
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Investing Associate
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| I think that some money should always be kept very liquid for emergencies. Personally, we keep money that we want very liquid in an ING savings account. The interest rates are a slight bit higher than your average bank rates. My suggestion would be decide how much you want to have liquid for emergencies and put that in ING (or another savings account), then take the remainder and put it in a higher yielding mutual fund. |
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| chop456 |
| Posted: Mon Feb 21, 2005 12:30 pm Post subject: |
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Investing Sr. Associate
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| Can you fill me on on what an ING account is? |
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| Benjamin |
| Posted: Mon Feb 21, 2005 12:50 pm Post subject: |
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Administrator
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| eagertolearn |
| Posted: Wed Feb 23, 2005 12:09 pm Post subject: |
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Investing Sr. Associate
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| I too would suggest the ING account - based on what I have been reading - because their interest rate is much better than the traditional bank down the street. |
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| trixiezzz |
| Posted: Wed Feb 23, 2005 6:59 pm Post subject: |
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Investing Manager
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| ING accounts still must be tied to a conventional checking account. They make initial deposits in your checking account to confirm that you are in fact the owner. Then you can move money in and out online. Still, I guess what I'm wanting to compare is not the truly liquid accounts, but something more short-term, like a CD. |
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| eyesandearsjami |
| Posted: Thu Feb 24, 2005 2:25 pm Post subject: |
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Member Of The Month! February
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The best national savings rate I've seen lately is Capital One's. Right now they are offering 2.61% apy. This is competitive to most banks 6 month cd but without having to lock in your money.
Jami |
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| 1MegMeg |
| Posted: Fri Feb 25, 2005 9:02 am Post subject: |
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Investing Associate
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Jami,
Actually Emigrant Direct (http://www.emigrant-direct.com), an online bank like ING has a 3% interest rate right now.
 Meg |
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| trixiezzz |
| Posted: Sat Feb 26, 2005 6:41 pm Post subject: |
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Investing Manager
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| 1MegMeg wrote: | Jami,
Actually Emigrant Direct (http://www.emigrant-direct.com), an online bank like ING has a 3% interest rate right now.
Meg |
I've never heard of them. Does Emigrant Direct also offer some kind of referral/sign up bonus? Is it linked to your checking account? |
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| 1MegMeg |
| Posted: Mon Feb 28, 2005 10:13 am Post subject: |
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Investing Associate
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| trixiezzz wrote: | | 1MegMeg wrote: | Jami,
Actually Emigrant Direct (http://www.emigrant-direct.com), an online bank like ING has a 3% interest rate right now.
Meg |
I've never heard of them. Does Emigrant Direct also offer some kind of referral/sign up bonus? Is it linked to your checking account? |
They don't offer a referral/sign up bonus, but the savings account is linked to you checking accout, just like ING. |
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| paula0000 |
| Posted: Sun Mar 06, 2005 7:34 am Post subject: |
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Investing Manager
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| I know quite a bit about ING but didn't know about the Emigrant bank you are talking about. I'm going to check it out. |
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| jasonr114 |
| Posted: Sat Mar 12, 2005 3:44 pm Post subject: |
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Investing Associate
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I would also place a vote for Emigrant Direct. I read rumors on another site that they will be bumping their rate upto 3.25% on Monday.
The website and customer service is not always as nice/good as ING, but the rate in better, and IMO that is what is important.
As noted above, it is beneficial to have your emergecny funds (2-3 months income) in assests that are as liquid as possible, in case you need them. IF you have a HELOC it is possible to have funds that are not as liquid, such as savings bonds or cd's.
I am personally building my emergency fund. I have:
$2000 in US Savings Bonds (3.67%)
$2100 in an ING CD ladder
$1500 in an Emigrant Savings Account (3%)
$1000 in a Checking Account
The two cash accounts are most liquid. The CD's at ING can be cashed in with a phone with a 50% interest pentatly. The US Bonds are least liquid because they can be cash in ONLY after 1 year w/ a pentalty, 5 years w/out. |
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| noksagt |
| Posted: Mon Mar 21, 2005 5:02 am Post subject: |
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Member of the Month! March
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| jasonr114 wrote: | $2000 in US Savings Bonds (3.67%)
$2100 in an ING CD ladder
$1500 in an Emigrant Savings Account (3%)
$1000 in a Checking Account | Sounds similar to my approach. For my emergency funds, I have $4000 in US Savings bonds, $5000 in 5 year CDs (my ladder is already full, but I'm going to migrate to 7 year at a credit union), 5000 in a high yield credit union accountm and $500 in checking (minimum for interest). More in other investment accounts, of course. | Quote: | | The CD's at ING can be cashed in with a phone with a 50% interest pentatly. The US Bonds are least liquid because they can be cash in ONLY after 1 year w/ a pentalty, 5 years w/out. | The penalty on the Savings Bonds is probably less stiff than the ING CDs. After that first year, cashing them early might make more sense than redeeming the CDs early. I see them as very similar investments. But newer savings bonds are giving crummier and crummier returns. |
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