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Should I open a Money Market Saving Account?
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2018-10-26 at 1:38 AM UTC
Originally posted by SBTlauien Is there any downside to online banks?
The downside is not having a bank you can go to. Not a huge deal because you make transfers to other banks and institutions when needed, but it can make it more difficult to deposit cash and anything else you’d want to do in person.
Also, online banks are good for savings accounts, but not always checking accounts. Some don’t even offer checking accounts, and it could be harder to get a debit card, but I assume that’s not a deal breaker because money market accounts are the same.
A good option could be to do your checking at a local bank or credit union and savings at an online bank.
Some more helpful links:
https://www.nerdwallet.com/blog/banking/pros-cons-online-only-banking/
https://www.investopedia.com/articles/pf/11/benefits-and-drawbacks-of-internet-banks.aspThe following users say it would be alright if the author of this post didn't die in a fire! -
2018-12-09 at 12:39 AM UTC
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2018-12-09 at 3:56 AM UTC
Originally posted by Ajax The downside is not having a bank you can go to. Not a huge deal because you make transfers to other banks and institutions when needed, but it can make it more difficult to deposit cash and anything else you’d want to do in person.
yea but if they pissed you off where would go for a shooting spree ? -
2018-12-09 at 4:08 AM UTCI miss MORALLY SUPERIOR BEING
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2018-12-09 at 5:16 AM UTC
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2018-12-24 at 2:42 AM UTCShould I instead just do some CDs and alternate them so that one matures every year?
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2018-12-24 at 3:13 AM UTCThe following users say it would be alright if the author of this post didn't die in a fire!
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2018-12-25 at 1:03 AM UTC
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2018-12-25 at 3:42 AM UTC
Originally posted by SBTlauien Should I instead just do some CDs and alternate them so that one matures every year?
They call that a CD ladder. You could do that, though I’m not sure the hassle is worth it. It depends how liquid and accessible you want your assets to be. However, in a rising interest rate environment like the one we’re in, laddering your CD’s keeps you from locking up all your money in a long-term rate and missing out as rates rise. I would stick with shorter-term CDs with interest rates rising. -
2018-12-31 at 10:23 PM UTC
Originally posted by Ajax They call that a CD ladder. You could do that, though I’m not sure the hassle is worth it. It depends how liquid and accessible you want your assets to be. However, in a rising interest rate environment like the one we’re in, laddering your CD’s keeps you from locking up all your money in a long-term rate and missing out as rates rise. I would stick with shorter-term CDs with interest rates rising.
What's short? 3 years?
I still don't fully understand. If the APY is 2.50 then on a $15k deposit, that would yeild $375 a year, is that correct? So in three years, $1125. -
2019-01-01 at 4:19 PM UTC
Originally posted by SBTlauien What's short? 3 years?
I still don't fully understand. If the APY is 2.50 then on a $15k deposit, that would yeild $375 a year, is that correct? So in three years, $1125.
Yeah, less than a few years would be considered short term.
You are correct in the calculation if it were simple interest. A $15k deposit with an APY of 2.5% would yield roughly $375 per year. However, you would end up with more than $1,125 after three years due to the magic of compound interest. If your interest is compounded monthly, which is usually the case (sometimes you get daily), then it would compound to a total 3 year yield of $1,167. -
2019-01-03 at 11 PM UTCRobinhood is supposedly opening savings and checking accounts with 3% interest each. I'm on the early access list.
They fucked up by saying they will be SIPC insured without having any contact with the SIPC say it's commisioner.
I am hopeful. Free withdrawls on 75,000 withdrawals they say. -
2019-01-03 at 11:02 PM UTCPut your money in a low volatility ETF while the stock market is still shaky. Fuck CD's
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2019-01-04 at 12:11 AM UTC
Originally posted by DietPiano Put your money in a low volatility ETF while the stock market is still shaky. Fuck CD's
Examples please? I looked up a few “low volatility” ETFs and they all tanked along with the rest of the market in 2018, especially in December. Depending on his savings goals and how soon he wants to be able to use the money, a safe bet like a CD would be best for wealth preservation and inflation protection.
I agree, however, that CDs should not be considered to be long term investments. For that, stick to equities in the form of index funds that can be purchased as mutual funds or ETFs. -
2019-01-04 at 3:48 AM UTC
Originally posted by Ajax Examples please? I looked up a few “low volatility” ETFs and they all tanked along with the rest of the market in 2018, especially in December. Depending on his savings goals and how soon he wants to be able to use the money, a safe bet like a CD would be best for wealth preservation and inflation protection.
I agree, however, that CDs should not be considered to be long term investments. For that, stick to equities in the form of index funds that can be purchased as mutual funds or ETFs.
Municipal bond ETFs -
2019-01-04 at 3:58 AM UTCThe key is always to buy low and sell high, no matter WTF you deal in. Used cars are good, mobile homes (in most states). Buy something, with the intent of selling it for more than you paid for it. Fuck the stock market, banks, cd's etc.
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2019-01-04 at 3:59 AM UTC
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2019-01-04 at 4:01 AM UTC
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2019-01-04 at 4:05 AM UTC
Originally posted by DietPiano Municipal bond ETFs
Like what, VTEB? MUB? SHM? TFI? Results have been lackluster this year. If it weren’t for the dividend yield, most would have lost money. Keep in mind, bonds mean debt and we have a major debit crisis.
I’m not saying there’s not a place for bond funds. Full disclosure, I have several in my portfolio. It just might be worth considering a CD ladder as a temporary place to park some money in a rising interest rate environment, especially in comparison to some money market accounts.
I’ll probably never buy a CD though. Not risky enough for my tastes. -
2019-01-04 at 4:07 AM UTC
Originally posted by Erekshun The key is always to buy low and sell high, no matter WTF you deal in. Used cars are good, mobile homes (in most states). Buy something, with the intent of selling it for more than you paid for it. Fuck the stock market, banks, cd's etc.
Used cars? Mobile homes? Do not listen to this clown.
