rbrettctd

Whats a good savings type account? Im looking for something like a CD, but something I can continuously add money to. Im saving for a new truck in the future, and would like to add part of each paycheck to an account that makes more than the .08% that my savings earns. My CD brings in a decent 4%apr, but doesnt allow me to add money every month or 2 weeks or whatever. Is there an account type that has the best of both worlds?

74dart

Have you looked into a money market. Thats what we use to hold our emergency fund when we have one.

rbrettctd

I have one of those I believe. Its through Janus. Do local banks have those? cause I dont want to hassle with electronic transfers each time if at all possible. Plus if its like my Janus, it seems to fluctuate a lot. Thanks.

74dart

My local credit union has one. I guess you would just have to ask your bank but I dont see why they wouldnt have one.

Rednecktastic

CD isn't liquid and at 4% you should just get into a money market account. Shop around, I think there is a site called bankrates.com.

My broker pays 4.35% on money market and offers a 5% 6 month CD with minimal deposit of 50,000. I don't think there is a minimal on money market.

So either do a money market account or find a good financial advisor and get into a good mutual fund depending on how much you have...

wreedCTD

Mutual funds are another option. But i think you need at least $2500.

Truckman0097

Mutual funds aren't very "liquid" either. Check bankrates.com like already mentioned. Look into e-Money Markets... Like INGdirect.com and emigrantdirect.com and amtrustdirect.com. Most are boasting 4% - 5% returns and basically it is an online savings account. Linked to a normal bank account and you can deposit as often as you want. You can only withdraw up to 6 times a month, but that is federally mandated, just like a normal savings account.

wreedCTD

where does he says he wants it to be liquid? i could sell all my mutual funds and have my money within a day.

Truckman0097

That is true - and I am not saying Mutual funds are a bad idea... but more work. They do usually return very well if you are in the right funds. I have both mutual funds and e-money market (however, I just started the e-moneymarket account) the one thing I like is it has no minimum required. But dont you pay penalties and taxes on money earned in a mutual fund if you try and redeem in the short term? wreed, not trying to start an arguement, I am not a banking professional and I am trying to learn as well.

Also, as stated, a lot of banks have 6 month and 12 month CDs....

wreedCTD

i use Fidelity and would recommend one of these funds for starters.


http://personal.fidelity.com/product...vsr?refpr=rmf7 Click on "large growth, or "large value"

Truckman0097

Mutual funds are a great idea for the future, but if he is looking into just earning some money to buy a truck, they may not be the best choice. For them to be high earning, they also are usually high risk, which isn't where you want your money unless you are leaving it there for years so you can ride up and down with the market, since a mutual fund is still tied to how well the market performs. Now you can be safe with Mutual funds, but then you are not going to get the huge gains. and either way, if he is only planning on short term investments for saving for a truck, he is paying a penalty (tax on his earnings) to withdraw. That is why I suggested e-money markets or even CDs, you can withdraw from the money market anytime and not pay a tax on the money, just like a savings account. If he was planning on saving money to buy a truck 3-5 or more years from now, then a mutual fund would definitely be a better choice. Like stated before, not trying to argue, just throwing out my $.02

P.J

Check this out, ING direct.

I had some CD's that matured on the 6th of October this year. When I went into my local bank to renew them the rate had gone from 5.15 (APY) to 3.4

I checked into the "orange savings" account, I am totally satisfied with it so far.

I made my initial deposit on October 10th, the account has earned $18.16 in the last 11.5 days (not too shabby).

Plus, you can transfer in and out of there with the click of a mouse.

If you (or anyone) thinks they are interested, let me know. Kinda like direct TV, if you deposit $250.00 after a current customer refers you you get $25.00 deposited in your account (I get $10). Not too bad though, 10% just for opening with a small deposit!

Let me know if you are interested, no sense in not getting the extra $25.00, right?
http://home.ingdirect.com/products/p...SavingsAccount

P.J

BTW, after reading your initial post, THIS is the absolute best route from what you are asking for. You can even set up a specified amount of DIRECT deposit in to the account if you like. The big feature I like about this vs. 99% of the investments out there is that I can access the money right away (there is a 10 day hold on your first deposit though).

Best of both worlds here folks, better rates than 6/12 AND 18 month certificates and no fees/early withdraw hassles. Tied directly into your existing checking account, couldn't be easier!

rbrettctd

Yes CDs have dropped. Ive had mine since February 05. The first year one was 3.75. Then I opted for 6 mo. at 4.5. In august I just let it fall over and it dropped to 3.6. My bank has the highest of all the local credit unions and banks in the area as well as the Lutheran fund and state farm bank (the ones Ive checked). Mutual fund is what my Janus is, and it varies a lot. I lost about 1/2 of it at 9/11....its just now getting back to where it was before then. Im looking for something stable, that wont drop, just increase. It will be 9months-24months for a truck. Good advice so far, thanks.

P.J

Not likely.

My father in law lost over $30K after 9/11, just couldn't get a grip on how far it would eventually go until it was too late.

We only lost about 5K on one of the 401K's, it came back up by about mid 2003 though.