smoothshooter
Member
I do the same thing you are talking about.
Money Market accounts are easy to access for withdrawals.
Savings account interest?
- Thread starter lrrifleman
- Start date
I do the same thing you are talking about.
Money Market accounts are easy to access for withdrawals.
You can buy treasury bills, notes, or bonds from Home — TreasuryDirect for periods ranging from a few weeks to 30 years. They always pay competitive rates and you never pay state or local taxes on income. These typically pay 0.2-0.4% mote than bank CDs of the same duration.
MaxKimber
US Veteran
Fidelity Money Management Account
A bank savings account is only good for access to quick cash. It is not an "investment" by any means. You want an investment? Get into the market and don't pay attention to the daily ups and down. The baseline always goes up. Get into it for the long haul.
Nope.
But I can recommend ditching your commercial bank and moving your money to a credit union.
Commercial banks are all about making money off your deposits.
Credit Unions are all about making money for the members and "spreading the wealth" in the form of higher interest rates on your deposits, and giving you lower interest rates on loans.
I have a savings account with one of my local credit unions that pays 3.75% on all deposits. No fees, no minimums.
I think you'd be pretty hard pressed to find that at any commercial bank.
FWIW, I ditched commercial banks and started doing all my banking with credit unions over 40 years ago - and I have never regretted that decision.
YMMV...
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Just a little curious
With the interest rates so low - the banks spend more for the postage mailing you statements than the interest they pay you.
bekeart
With the interest rates so low - the banks spend more for the postage mailing you statements than the interest they pay you.
bekeart
I moved my savings to FDIC insured CD’s 2 years ago, interest rates between 4% to 5.5%.
I’ve been very pleased with them since I can redeem them anytime with a reasonable penalty. Currently have 8 in rotation.
I’ve been very pleased with them since I can redeem them anytime with a reasonable penalty. Currently have 8 in rotation.
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If you want a fixed income relatively safe investment, Treasury Bonds, CD's and money markets are good. The problem is they will only pay you about 4.3% as of today unless you go out to 10 or 30 years. Muni bonds are very low now unless they are rated very low. Corporate bonds will usually pay higher rates but who knows what their stability is.....
Doug M.
Member
The first best step is to reduce debt; most of ours has been paid monthly.
Historically proven.
Imshootin
Member
I've been banking online for 5-6 years with Barclay's. Even after the last 3 or 4 interest rate cuts, my savings account is still at 4.25%. Have several CD's with them as well. Last CD I had mature, I just rolled it into the savings as CD rates have fallen a lot. I still have a local account at a credit union I've been with close to 50 years. Pension and Soc. Sec. direct deposit to them. Their interest rates suck. I keep enough there to pay the bills and buy groceries, etc. Any extra goes to Barclay's. If I need monies, they usually have it to my C.U. in a day or 2 providing it's not the weekend. No fees, no hassles. I've been real satisfied with their service.
Tiered Savings | Barclays
Tiered Savings | Barclays
Totally agree!
Irrelevant to the question of savings interest, but most certainly TRUE!
One of my favorite quotes comes from "David Copperfield," by Charles Dickens. The character of Wilkins Micawber says...
"Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery."
In other words, the first step on the road to happiness is to LIVE WITHIN YOUR MEANS! Amazing how many people refuse to do that these days.
venomballistics
Member
Wells Fargo is your first problem.
The SEC has stuck it's foot up their backside a number of times in the past decade, and they don't seem to change much
The SEC has stuck it's foot up their backside a number of times in the past decade, and they don't seem to change much
Because the system runs on debt. If you live within your means and don't borrow money, when you decide to borrow money for a big purchase, like a house or car, you are treated as a higher risk than someone with already crippling debt.
Want a job? They're gonna check your credit score. Want an apartment? They're gonna check your credit score. It's what matters now.
Hell, I wanted to upgrade my internet, so I went to Comcast and signed up for their internet. $60 a month, electronic withdrawals, no problem. Then they told me I could upgrade my phone service at no extra cost. They would even upgrade my phone to the newest model. All at no extra cost.
I've already signed a contract to pay them this money every month. But the phone, which was no extra cost, remember, I couldn't get because my credit score wasn't good enough. Never mind that I have enough money to buy a dozen phones in my bank, I can't get the phone because I haven't put myself in debt. Never mind that I could buy a phone, or just use the one I have now, I can't do it because of my credit score.
Oh, and the fact I have had the same plan for over 20 years with the same carrier and never missed a payment, that's irrelevant. But did I buy a ton of useless **** with my credit card? Very important.
Banks are like Vegas. They're gonna come out on top no matter what. And like Vegas, they get to change the rules to suit them.
Well, FWIW, you can build your credit score without carrying debt.
We charge a LOT of our day to day spending to our credit cards. BUT, we pay them off at the end of every month. Have for years.
We paid off our home 2 years ago.
We have NO car loans.
Our only debit is a small, low interest mortgage on our lake place - and the only reason we haven't paid that off is we can earn more in interest with a CD than what we're paying on the loan.
Our credit score is just over 825.
So, no, you don't have to be in debt to have an excellent credit score. You just have to use credit regularly, but pay it off every month.
That’s what I do, I use my credit card to pay many of my bills online and then pay it off on payday... and even when I couldn’t afford to pay it off I paid as much as I could over the minimum payment. That’s the only way I can think of to ultimately be debt-free.
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