NicoleCanoes Posted February 18, 2013 Report Share Posted February 18, 2013 I have a savings account and keep 1 month of finances in it at all times. I also put money in it each month so I can pay my tuition each semester. However I have problems keeping more than that in it. Way too tempting. What are my options for other types of savings? I'm thinking more long term but not as long term as a 401k. Something without large withdrawl penalties but enough to make me think. I'm looking to put about half of my tax return in it and then not touching it unless something unfortunate happens. Suggestions? Running goal - Dopey Challenge 2015Training to complete an Ironman by 2017. I can swim .5, bike 112, and run 26.2, separately. Buckland Hobbit, Level 4 ScoutSTR 10.25 | DEX 6 | STA 12.75 | CON 8 | WIS 9.75 | CHA 5.75 Link to comment
ceethegreat Posted February 18, 2013 Report Share Posted February 18, 2013 Have you looked at CDs? They're like savings accounts, but you have to keep a certain amount in there for a specified period of time before you can withdraw without penalty. They come in time lengths of months to years, and often have a higher interest rate than a traditional savings account. Cee, Level 2 Wood Elf Adventurer of the Earth KingdomSTR 4.5 . DEX 1 . STA 3 . CON 5 . WIS 8.75 . CHA 4ch 0|ch 1|challenge 2 Link to comment
RoseMadder Posted February 20, 2013 Report Share Posted February 20, 2013 CD's or Money Markets can be a good way to keep money separate. Most Money Markets don't have a withdrawal penalty, but the account might have a min balance. CD's are nice because often they are customizable (how long, how much etc). For some folks, just having the money in a place you don't 'see it' is a good thing, so a separate account number or even a savings with another institution can help. Hey, great job keeping so much on an emergency fund! That really rocks RoseMadderLevel 3 Adventurer Tiefling Vampire status: Clan Nosferatu Covenant Invictus STR 7 DEX 5 STA 4.25 CON 6.75 WIS 7.5 CHA 63rd 6 Week Challenge starting 1/5/14 *do over*3rd 6 Week Challenge starting 6/3/13 *abandoned*2nd 6 Week Challenge 2/25/13Starting 6 week challenge the first 1/10/13 Link to comment
Sdanthony Posted February 23, 2013 Report Share Posted February 23, 2013 Keep a separate account in a separate bank (online banks have the best interest rates... ally, ing, etc) and auto-draft every month/check into it... still very liquid but not as tempting, because it's more inconvienent to access than an account linked to your checking. Wood Elf AssassinLevel 2STR: 2 | DEX: 4.5 | STA: 5 | CON: 5 | WIS: 6 | CHA:3 |Challenge #1Challenge #2 Link to comment
NicoleCanoes Posted February 25, 2013 Author Report Share Posted February 25, 2013 I think I'm going with a CD. Based on rates/fees/minimum balance a CD with my current bank is my best option right now. It is sad that I only get 0.05% interest on savings but they want to charge 25% for a credit card. Running goal - Dopey Challenge 2015Training to complete an Ironman by 2017. I can swim .5, bike 112, and run 26.2, separately. Buckland Hobbit, Level 4 ScoutSTR 10.25 | DEX 6 | STA 12.75 | CON 8 | WIS 9.75 | CHA 5.75 Link to comment
vagabondette Posted February 26, 2013 Report Share Posted February 26, 2013 If it is an impulse thing then using a separate bank is a good idea. I keep my short and mid-term savings in ING (now Capital One 360). I like it because I can set it up to auto-save to multiple named accounts. So, rather than putting all of your money into one account and having to track how much is for what purpose, you could have an emergency fund, a tuition fund, a vacation fund, etc. all of them getting auto-deposits of however much you want on whatever frequency you want and you can see their balances at a glance. It is one of the best set it and forget it savings opions available. If you are worried about tapping it, it takes 3 days to transfer the money so it won't be available on an impulse but is easy to access if needed. Link to comment
Terry V Posted August 13, 2013 Report Share Posted August 13, 2013 CD is your best bet but if you really NEED the money than you're stuck paying the fees. The better approach is probably just more self discipline. The idea of a separate bank is a good one as it'll force you to go there to get money out but will also make it more difficult to put some in. Link to comment
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