Need Help with Saving Money

[wenpeek]

Can anyone tell me if there is something available out there that I can get to help me save money for a car to where the money comes right out of my payroll check and I wouldn't be able to touch the money until a certain amount of time has lapsed? If I've totally confused you what I'm trying to say is I really stink at saving money and if I have access to it I'm going to spend it. So what I need is something I can get or enroll in (like a CD or some kind of investment) to where I can't access the money for the duration of the agreement (for 3-6 months). Is there anyone out there that might have a clue what I'm trying to find or can give me some useful advice other than stick it in a savings account and don't touch it?

[EHadden]

Some banks and credit unions have Christmas Club types of programs that you could use to do this, I am sure. Although the interest earned would be obscenely low (if at all), you can have a pullout date of, for example, December 1. If you start saving on June 1, you have 6 months set up where you can't pull out the money. As for direct deposit, you can probably direct a portion of you paycheck into it, or you could do as my wife and I did, we just set up a "bill" that had to be paid to our savings out of every paycheck and wrote a check to "pay that bill."

Good luck with your endeavors!

[Tree0164]

You can contact your a HR deparment to see if they have any special savings rate for credit unions. We had that at my last job and they could do a portion right over to the credit union account.

You could also set up an automatic transfer from your checking to a saving accounts on your payday.

[sweeps]

Most HR departments allow you to direct-deposit into more than one account. For example you can deposit X amount into your checking account, and Y amount into your savings account. My company actually allows it to be split up into 3 accounts.

Yes, a 3- or 6-month CD is a good choice if you need to have the money "locked away" from you. The withdrawal penalty motivates most people to leave the money alone. Also not having ATM access to the account is helpful.

[robex]

When Dh and I were saving for a down payment for our first house, our bank had a special account where the money was locked in at a high interest rate, and could only be used for a first time residence purchase. It was a great incentive for us. This was 14 years ago, and they don't do it any longer, but I would check at your bank and see what they can do for you.

[barbara L]

Purchase CDs that will become available for the month that you want to buy the car in. Even though you can cash out most CDs early, they aren't as easily accessible and you are subject to a penalty. Interest is usually better than most savings acconts.

[flash]

Most banks allow you to set up subaccounts. I have a friend who has 10! The bank can set up how your direct deposit is redirected into the accounts.

There is actually a name for this, but I'm drawing a blank on it. Jeffrey?

[sweeps]

Originally Posted by MJC

Most banks allow you to set up subaccounts. I have a friend who has 10! The bank can set up how your direct deposit is redirected into the accounts.

Excellent idea.

[Firefly]

Your bank should be able to set you up with something like you want. Call and explain and see what they offer you.

[flash]

I asked my personal banker what is available at BofA. Here is her recommendation:

"Thanks for contacting me. Yes, we have an automatic savings plan. WE don't have sub accounts but you can have up to 6 free savings accounts (with different account numbers) for various reasons. Then we can set up an automatic transfer to move a specific amount on specific dates from your checking account. Just let me know how many accounts, the purpose, amount and dates. I will set up the accounts and mail the paperwork for signatures.

Christina Arnold
Client Manager
Assistant Vice President
Premier Banking and Investments "