Quote:
Originally Posted by cartmanfromsouthpark
thanks guys. One more question: am i better off with a CD instead. a savings account now seems worthless. Im looking for something that will allow my money grow quickly or at least not so slowly. Thanks for the responses.
|
CD's and high-yeilding savings are at about the same levels (true you could find a much longer term CD that may be 1-2 points higher).
Again with a CD you are locking your money into an account that you cannot touch (without penalities). High-yield savings are easy accessible (I have an account with HSBC that I love - and 3.55 interest isn't bad in this economy).
I understand that by throwing $100 and making a few ($3.45) bucks doesn't sound all that sexy, but it's certainly better than throwing it out on lottery tickets.
Unless you risk your money in a money-market, stocks or even a bond, you aren't going to see much higher rates than a high-yielding savings.
And with stocks/mm/bonds, you are either risking your money, or losing liquidity. True you can yield a much higher return, but you are also risking your cash. But look, even the best stocks or funds only average 8-10% in the long run. That's $8-10 on your $100 at the end of the year, minus brokerage fees, fund fees, etc...
With a savings/cd, there is no risk. Even if your bank goes under, your money is protected by the FDIC.
Hope this helps.
PS. If I were you I would open the online savings, throw in the hundred bucks AND collect cans to return and deposit that money into the savings!