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

APY is the total yield you will get over the course of the year. If interest is compounded daily this will not be the same as your interest rate (I'm going to guess your actual interest rate is something like 4.5% but I'm too lazy to do the math to figure it out exactly). The APY just makes the math easier so you won't need to take daily compounding into consideration.

Doing the quick and dirty math you should be yielding about $4 a month:
$1000 *5.05% / 12 = $4.20

What do you mean by put the money on share? Do you mean buy stocks? If so, that's a good idea only if you don't plan on using that money in the next few years. The stock market always beats bonds/money markets over time. But during any one year you can expect to make significantly more or even lose a significant amount of money. If you're looking for a way to keep your capital and hedge against inflation, a money market account like the one you're describing is your best bet. :)
 
groove1 said:
3 reasons (and more) not to use an online bank:

http://banking.about.com/od/savings/a/3onlinebankacct.htm
Click to expand...

One of these is actually the reason I got an online bank account. I work in a bank and since i have access to my money I spend it. An online savings account keeps my money safe from ME. Bank to bank transfers take about 3 days but in the long run does it matter? Don't spend the money your going to transfer. I like my HSBC account. High interest, haven't used CS yet... so far so good...
 
FNBO stands for First National Bank of Omaha..
and their 6% rate lasts untill Sept.28
seems they're FDIC insured.
 
i opened fnbodirect.com account and so far so good.
don't have any problem:wof:
 
One United

FYI, you can not take your money out "anytime" with One United. They have this long-drawn out verification process and it took me a month to get my money out. They also pulled from the wrong account resulting in overdrafts and were not willing to refund the overdraft fees, which is why I closed my account.
 
be careful if you go in with HSBC, I had an incredibly crappy experience with them--my money just sat in their savings account fine until I went abroad for the first time to France and tried to get out money in the airport. Long story short, the ATM took my card, the banking personnel would not return it, and they wouldn't tell me why, even though I had my freakin passport and multiple forms of photo ID. Then when I tried to call them about it, they just transferred me about to 3 different departments to eventually tell me that they had absolutely no idea why that happened. The woman didn't even apologize.

Beware!
 
More options and advice

Check out this site for a more complete list and comparison of Savings and Money market choices.

http://www.bankrate.com/brm/rate/mmmf_highratehome.asp?params=US,416&product=33

I use E*Trade, ING Direct, and GE Interest + (http://geinterestplus.com) and have been happy with all three.

Other advice (take it or leave it):
- Have a plan - know what your doing with your money and why.
I keep seeing a lot of posts saying "with your 100K you should be investing in XYZ". There is a difference between savings and investing - having some $$ in cash rather than the market can be good. 100k for one guy may be a life's savings but for another just chump change. Each situation is different - don't just blindly do something because someone on spoofee that doesn't know your situation says so.

- Pay off your debt...especially credit cards. Instead of looking for a 5+% savings rate maybe consider saving 18+% on your credit card.

Check out Crown Financial (http://www.crown.org/) for resources on dealing with your $$$. I have had good success with their Money Map program for creating a plan - and with my honey bought into the plan, we work together on goals rather than fight over money.

Anyhow...good luck!
 
Same advice here...

Learn how money works before you go letting banks rip you off.

Look at the Primerica Web site for all the free info you need to make a good financial decision!
 
matt0424 said:
i opened fnbodirect.com account and so far so good.
don't have any problem:wof:
Click to expand...

Yes..FNBO is ok to deal with...only problem is the 6% rate is ending at
end of September..so depending how much they cut it..it may be
time to start looking elsewhere for the highest savings rate.
 
amariyah said:
be careful if you go in with HSBC, I had an incredibly crappy experience with them--my money just sat in their savings account fine until I went abroad for the first time to France and tried to get out money in the airport. Long story short, the ATM took my card, the banking personnel would not return it, and they wouldn't tell me why, even though I had my freakin passport and multiple forms of photo ID. Then when I tried to call them about it, they just transferred me about to 3 different departments to eventually tell me that they had absolutely no idea why that happened. The woman didn't even apologize.

Beware!
Click to expand...

I have to agree here about HSBC. It was so easy to let the money sit there or to transfer online, but anytime that I wanted to actually pull money out of an ATM, it was impossible! I was never able to get my money out and when I called customer service, they couldn't explain it to me - just told me that there must be something wrong with the ATM at the branch I was using. Which would have been fine if I hadn't tried several different ATMs - I don't think they all went down at the same time! Anyway, I made some good interest off of them for the short time I was there. But then I transferred all of the money in the account online and got rid of them. It wasn't worth the trouble or the headache they gave me.
 
stax68 said:
Yes..FNBO is ok to deal with...only problem is the 6% rate is ending at
end of September..so depending how much they cut it..it may be
time to start looking elsewhere for the highest savings rate.
Click to expand...

The rates have gone down. Why on earth are they going down after one prime rate drop when the Fed has been raising interest rates for some time? Somebody please clue me in!

:confused:
 
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I got an e-mail notice from HSBC saying it is changing its rate to 4.5%. Eh...

I'm thinking of moving my money now to a Fidelity Mutual Fund. I already invested a good chunk already in an international fund. My % return was higher this year compared to the interest from HSBC.
 
PinayMaria123 said:
I got an e-mail notice from HSBC saying it is changing its rate to 4.5%. Eh...

I'm thinking of moving my money now to a Fidelity Mutual Fund. I already invested a good chunk already in an international fund. My % return was higher this year compared to the interest from HSBC.
Click to expand...

Congrats on your wedding, PinayMaria! :claps: :) :rose:
 
PinayMaria123 said:
I got an e-mail notice from HSBC saying it is changing its rate to 4.5%. Eh...

I'm thinking of moving my money now to a Fidelity Mutual Fund. I already invested a good chunk already in an international fund. My % return was higher this year compared to the interest from HSBC.
Click to expand...

I am also HSBC a/c holder and got the same mail.
how can I move my money to Fidelity Mutual Fund?
 
stax68 said:
Yes..FNBO is ok to deal with...only problem is the 6% rate is ending at
end of September..so depending how much they cut it..it may be
time to start looking elsewhere for the highest savings rate.
Click to expand...


Rate at FNBO just went from 6.00 % to 5.05 %
Looks like One United Bank at 5.30 % is now the highest rate
 
I just opened an account with iGOBanking.com... They had a 5.30% APY but just lowered it last week to 5.17%. No fees, $1 to open, etc. I really like ING Direct but 4.3% yield isn't worth it. They're listed on bankrate.com (that's how I found them).
 
Dropping rates

Someone asked the question and the reason the interest rates on savings and cds are dropping with the Fed cut is because banks now borrow money at a lower interest rate, therefore, they are not going to give you as hight of a rate to borrow your money. While a rate cut is good for mortagages, line of credit, and so forth, it is not good for the rates of CDs and savings accounts.:verysad: :mmph:
 
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