(Deprecated) Where To Put Your Money If It's Just Sitting In a Checking Account

Emigrant = cheating and fraud

AVOID EMIGRANT DIRECT!!!

I had a few accounts open with them (to spread FDIC insurance around) and I had to liquidate them briefly to buy a new house. 2 of my 3 accounts were closed within 10 days an $100s worth of interest wasn't awarded - conveniently they were closed right before interest posted. I'm getting the runaround regarding:

- why only a couple accounts were closed, but not all
- why nobody told me, despite my several calls about the withdrawals, to keep at least $1 in my account
- why there's nothing in their disclosures about having $0 and accounts closing in 10 days even though, apparently, it is policy
- why they've decided they're right and I won't be getting my interest

This is not the first problem I've had with them and every problem involves multiple calls to some of the most unfriendly, low-life CSR's I've ever had to deal with. I'm disgusted with my service from them.
 
I just moved close to 60k out of Emigrant and into ING to get the 4.75 until 4/15/06. I left $1.39 in the Emigrant account just in case.

I couldn't find anything in their agreement stating that accounts less than $1 are closed. They do remove inactive accounts, but it doesn't say what their criteria are.
 
I would recommend either ING Direct or UFB Direct. I haven't had problems with either.
 
Just go to whatever bank you guys use and buy a CD - I think this would be a much better solution than dumping your money with a company you're not familiar with... CD rates for 6 months & 1 year are around 4.30% and 4.55%, respectively.

Nearly every bank also has a money market fund for clients, and often times these accounts have check-writing priveleges - maybe a better solution for those that have to stay liquid. Money market rates around around 3.5-4%, though they flucuate & are likely to rise in the near future due to fed rate hikes. You would probably need at least a grand to get started in something like this though.

Don't dump your money with someone you don't know - it's just not smart.
 
forcedfx said:
I just moved close to 60k out of Emigrant and into ING to get the 4.75 until 4/15/06. I left $1.39 in the Emigrant account just in case.

I couldn't find anything in their agreement stating that accounts less than $1 are closed. They do remove inactive accounts, but it doesn't say what their criteria are.
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I'd hope these aren't all your assets - with 60k you should be making your money work for you rather than have it sit in cash!
 
Mist said:
Just go to whatever bank you guys use and buy a CD - I think this would be a much better solution than dumping your money with a company you're not familiar with... CD rates for 6 months & 1 year are around 4.30% and 4.55%, respectively.
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Check www.bankrate.com for the highest rates -- everything listed there is FDIC insured. If you don't mind sending your money out-of-state, you can do 4.94% APY on a Corus 1 year CD right now. (Or if you're in Chicago, Corus has local branches!)

- B
 
Have you guys ever thought about putting some of your money on ETF or bonds instead? They tend to have larger yield, if picked correctly, with pretty much low risk.

I don't think whether your fund is FDIC insured is a worthy argument. It's not like our banking system will collapse soon like Southeast Asian countries or Argentina.

We need more CPA and CFP here. Please speak up if you are, so we can get free advices ;)
 
Mist said:
I'd hope these aren't all your assets - with 60k you should be making your money work for you rather than have it sit in cash!
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What would you recommend? I have about this much sitting there, don't know what to do with it... :confused:
 
What is really interesting with ING's new offer is that they can lock people into making all new deposits with them while still maintaining a lower interest rate (3.8%) than HSBC (4.25%).

Remember than only *NET* new deposits get the promo rate of 4.75% while all your past deposits still keep earning the old rate. Which means that the bulk of your deposits at all time will keep earning interest at a lower rate and if you fall into ING's trap you will still actually earn only as much as you would have earned in HSBC anyways.

An example (to simplify, I am taking annual rates and assuming the ING promo runs for 1 whole year):

Interest in ING:

Old deposits: 5,000 * 3.8% = 190
New deposits: 500 * 4.75% = 23.75
TOTAL = 213.75

Interest in HSBC:

5,500 * 4.25% = 212.50
 
I suggest you open an account with treasurydirect.gov. You can buy I-bonds which pay 6.7% or buy 28-day t-bills which pay 4.1% and state tax exempt.

If you decide to buy i-bonds, you need to find out more about 1-year holding period and the way rates are calculated.

I closed my ING account, and moved money to TD acount.
 
Hi,

At that rate, the profit is sure good. Anyway, what about tax? Can someone work out the details or calculate how the tax influence our decision on weather to put money in or not. Thanks
 
You will only be taxed on the amount of intrest your money makes. This year I made around $60 ($50 was the signup bonus) with ING Direct. I'm not sure what tax bracket I'm going to be in, but $2 - $3 will prob go to tax's. Over all you will be further ahead with a saving account than letting your money set in your checking w/ no intrest earned.

Kage_
 
i-bonds are not a bad idea -- except that they're tied to the inflation rate. The fixed rate is pretty small. If inflation for some reason drops, so will the i-bond yield.
 
starsweet said:
What would you recommend? I have about this much sitting there, don't know what to do with it... :confused:
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It will depend on goals and level of risks you're willing to take. Read some books on investing or some magazines. Kiplinger's Personal Finance is a good start. The free subscription is floating around once in a while...
 
HSBC ups the rate!

Just got this from HSBC

Announcing your 4.80% APY* Fat Savings Bonus.

Starting today through April 30, 2006, your HSBCdirect.com Online Savings account will earn a MASSIVE 4.80% APY*.

* Annual Percentage Yield (APY) is offered on accounts opened through 04/30/06. After 4/30/06, all deposits will earn the variable APY available at that time. Minimum balance to open an account is $1.00.

http://www.us.hsbc.com/1/2/3/personal

Scott
 
and if you have the $$$ try Hillcrest - 4.85%

They beat HSBC - but minimum balance is a cool 1/2 a million.
 
PayPal gives you 4.47%

Don't forget about Paypal which gives you 4.47%
 
Capital One Savings

What about Capital One's Money Market and High Yield Money Market? They're never in the list, but seem to have competitive APYs with no minimums and no fees. Last I checked, they were at 4.25%
 
I got a 7 yr. CD for 6.00% at Pentagon Federal Credit Union before they lowered their rate to 5.88%.

Yield to maturity is 7.22%, a really nice return.

Retirement is nice, all I have to do is manage my assets, keeps me from having to work for a living.
 
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