| Where to put away small amounts of money? |
|
|
|
|
|
rkilicar
New Member
Cash: $ 0.65
Posts: 3
Joined: 29 Aug 2010
|
| Where to put away small amounts of money? |
 |
|
Hello
I have been having a lot of financial problems and just this year am able to actually save some of my income.
I want to put away 5000 dollars at a time to keep for when I can buy a house. I just don't know what's the best way to do this. I am able to put away 5000 dollars every 4 months.
Where should I put this money? I do not plan on using it towards a house for another 2 years or so.
Thank you.
|
Sun Aug 29, 2010 3:22 pm |
|
|
coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
|
Two years is way too short of a time to put money at risk. You're not going to earn much in any safe investment these days. Probably the best you can do is a CD. www.bankrate.com has info on CD rates.
~Tim~
Eye Candy : Why Whimsy
|
|
Mon Aug 30, 2010 2:25 am |
|
|
rkilicar
New Member
Cash: $ 0.65
Posts: 3
Joined: 29 Aug 2010
|
Would a high yield online savings account be better for me?
Any good sites that compare all the banks yield ?
Any suggestions on online banks? I was suggested to use
|
|
Mon Aug 30, 2010 3:07 am |
|
|
rkilicar
New Member
Cash: $ 0.65
Posts: 3
Joined: 29 Aug 2010
|
SmartyPig
|
|
Mon Aug 30, 2010 3:09 am |
|
|
StockTrader6080
Contributing Member
Cash: $ 7.65
Posts: 38
Joined: 26 Sep 2009
|
Savings rate in bank is very low. Maybe you can invest some in mutual funds and keep rest in bank just in case for liquidity.
CoolTrade Robotic Traders
|
|
Mon Aug 30, 2010 2:40 pm |
|
|
jlevitt
New Member
Cash: $ 1.80
Posts: 9
Joined: 26 Aug 2010
Location: Olathe, KS
|
| Saving vs. Investing |
|
|
First of all, congrats on the savings goals and making progress. That's a huge step. I advise my clients based on the length of time the money will be put away. It comes down to saving vs. investing. If you plan to use the money within five years, I consider it savings.
I recommend saving in a money market account from your local bank or mutual fund broker. You can get close to CD rates while having the money available to withdrawal without penalty.
No fake signatures - thanks
|
|
Tue Aug 31, 2010 2:11 am |
|
|
mukeshkkashyap
Full Member
Cash: $ 21.20
Posts: 99
Joined: 05 May 2010
Location: india
|
thanx to all for sharing information
Personal Finance Planner
|
|
Tue Aug 31, 2010 7:14 am |
|
|
btacay
Member
Cash: $ 3.10
Posts: 12
Joined: 13 Sep 2010
|
| Saving Tip |
|
|
One of the biggest problems we all face with saving money these days is that it is always instantly available. That is why it is sometimes difficult to truly value what we have earned because it is so easy to instantly spend!
By using different bank accounts for the different aspects of your life, your goal of saving more money will be more attainable. The Save More Money Template that I discovered in the Money Skills For Life website will help you achieve your goal.
http://www.moneyskillsforlife.com
|
|
Mon Sep 13, 2010 3:33 pm |
|
|
oldguy
Senior Member
Cash: $ 275.70
Posts: 1316
Joined: 21 May 2006
Location: arizona
|
quote:
I am able to put away 5000 dollars every 4 months.
Where should I put this money? I do not plan on using it towards a house for another 2 years or so.
From a practical standpoint, it makes no diference. If you keep it at home it will be $30,000 cash. If you put it in a 1% account for 2 yrs, it will be $30,300 but you will owe income tax on the $300, you'll be left with about $200 - ie, $30,200 for the house.
The key point is that you are keeping the money safe. If you took risk and invested for 10%/yr and won, you would have $32,000 after taxes. And if you lost, you might have only $20,000. That is an unacceptable to take just for $2000.
|
|
Mon Sep 13, 2010 4:23 pm |
|
|
mukeshkkashyap
Full Member
Cash: $ 21.20
Posts: 99
Joined: 05 May 2010
Location: india
|
I recommend saving in a money market account from your local bank or mutual fund broker. You can get close to CD rates while having the money available to withdrawal without penalty.
Personal Finance Planner
|
|
Tue Sep 14, 2010 6:45 am |
|
|
Adria.John
Preferred Member
Cash: $ 32.60
Posts: 162
Joined: 20 Apr 2010
Location: UK
|
I would recommend you to keep the money in fixed deposit for 2 years. I think, in this way you could earn some interest and also your money would be safe with no risk.
Loan Expert!
Loans Fast | Pay Day Loan | Fast Payday Loans
|
|
Wed Sep 15, 2010 11:57 am |
|
|
CaliChristian
Full Member
Cash: $ 8.50
Posts: 56
Joined: 29 Jul 2010
Location: California
|
Congrats on having the self control to save and a goal to reach. I have to agree with everyone else here, it doesn't matter much where you put it as long as its liquid and you realize you wont be making any sort of interest on the money your saving, your main goal should be to keep it safe so it is there when you need it.
Non-Profit credit counseling. Over 20 years experience, we have helped over 200,000 families and individuals become debt free.
|
|
Wed Sep 15, 2010 11:04 pm |
|
|
Jammy
Full Member
Cash: $ 15.90
Posts: 73
Joined: 15 Sep 2010
|
| Savings account |
|
|
Savings account is your friend. That's exactly what I do. I mean why keep your hard earned money idle?
payday loan
|
|
Fri Sep 17, 2010 5:53 am |
|
|
mukeshkkashyap
Full Member
Cash: $ 21.20
Posts: 99
Joined: 05 May 2010
Location: india
|
I recommend saving in a money market account from your local bank or mutual fund broker
Personal Finance Planner
|
|
Fri Sep 17, 2010 6:34 am |
|
|
Adria.John
Preferred Member
Cash: $ 32.60
Posts: 162
Joined: 20 Apr 2010
Location: UK
|
| Re: Savings account |
|
|
quote:
Originally posted by Jammy
Savings account is your friend. That's exactly what I do. I mean why keep your hard earned money idle?
Well, saving account does not fetches good interest rate. Therefore i would suggest you for Fixed deposit or blue chip stock investment.
Loan Expert!
Loans Fast | Pay Day Loan | Fast Payday Loans
|
|
Mon Oct 11, 2010 5:58 am |
|
|
|
