ING DIRECT/Compound interest help.

[henrybemis]

Hi All,

Last month I opened up a ING Direct account to deposit my change jar savings. Right now I have thirty dollars that I'd like to add to my 2.35 % interest earning account. However, and this is where I need some thoughtful and savvy financial advice, since they compound daily and then add monthly, should I put in the lump sum and have interest compounded off of that amount or would I be wiser to make weekly deposits for say the next 3 ($10 a week) or 4 ($7.50 a week) weeks and earn more interest compounded on interest?

Thanks so much.

[terry1156]

You will earn more putting it all in at once now since the full amount will be earning interest as opposed to a partial amount. Since the interest is a fixed amount and not subject to gains and losses like the stock market, there is no need to place the money in over time. if it were stocks you were investing in, average dollar costing by putting in amounts over time like you mentioned makes sense, but not in this case.

[DivaJen]

This is a savings account, right? And interest is componded daily? Unless I'm missing something, the more money you get in there from the beginning, the more interest you'll earn.

[henrybemis]

Yes this is a savings account. Thanks for the advice.

[PennyPincher]

I sure love ING! Have you tried to get your friends and family involved? It's nice to earn the $10 per person that sign up. I've only been able to persuade two so far, but they love it as well.

That would add nicely to your account.

Get the money in there asap! It'll definitely earn more than where it is now.

[the4parkers]

we love ing also!! we've had 2 people sign up under us, and we've opened up accounts for our 2 sons under us!!

[jhd815]

Yes, get the money in there all at once.

Also, what a great idea to open accounts for kids. This sounds like it could be a really educational tool for parents who want to teach their kids about saving as well as kids who are already saving.

Also, can someone tell me what the $Saving Fourth, Sixth, HS Freshman tags are about? I must have missed something???

[terry1156]

Originally Posted by jhd815

Also, can someone tell me what the $Saving Fourth, Sixth, HS Freshman tags are about? I must have missed something???

They changed the titles depending on the number of posts you made. <A HREF="http://www.savingadvice.com/forums/showthread.php?t=3371">Here's the thread</A>.