Question about online savings accounts

[saver17]

Hello every just joined the site and very passionate about saving money. I wanted to know what online savings account do you think are the best? Just signed up for the online account called Discover Online savings.


Thanks

[Petunia 100]

Hello every just joined the site and very passionate about saving money. I wanted to know what online savings account do you think are the best? Just signed up for the online account called Discover Online savings.


Thanks

The one you chose is just fine. All of the interest rates are so low, even if you can find once paying a tiny bit more, it's not going to amount to much.

If you want your savings account to grow, you have to feed it. The interest is not going to do it for you.

[saver17]

The one you chose is just fine. All of the interest rates are so low, even if you can find once paying a tiny bit more, it's not going to amount to much.

If you want your savings account to grow, you have to feed it. The interest is not going to do it for you.

Ok thanks. I plan to feed it a lot starting in July once I eliminate my credit card debt which is about $2400 right now.

[rennigade]

Ever hear the expression "look before you leap." You asked us which ones are the best when you already signed up for one. We're all about helping so next time feel free to ask before you pull the trigger.

[disneysteve]

Ever hear the expression "look before you leap." You asked us which ones are the best when you already signed up for one. We're all about helping so next time feel free to ask before you pull the trigger.

At least it's easy enough to switch if there were something better. It's not as bad as the people who post, "Can I afford the $45,000 car I just bought last week?"

saver17, welcome to the site. As Petunia said, the Discover account is fine. Ally and Capital One are also popular choices.

[Jluke]

If this represents your emergency fund, then when you get to about 6 months of expenses saved in this account you will want to do some investing.

Otherwise your savings rate and interest earnings will not keep up with inflation.

ETA: Clarify that only new money would be put towards investing... the EF would remain in the savings account. I would not and do not invest my EF either.

[corn18]

If this represents your emergency fund, then when you get to about 6 months of expenses saved in this account you will want to do some investing.

Otherwise your savings rate and interest earnings will not keep up with inflation.

While I understand the concern of inflation, investing an EF in anything other than savings is not something I would do or recommend. I hate looking at my EF sitting there earning a paltry 0.2%, but it is an EF, not an investment. Trying to make another 0.8% by moving it to Ally savings would cause issues for my wife if I died. Not worth chasing. Investing it in my 60/40 taxable account would create downside risk and with my luck I would need it when the market tanked 20%.

Just leave it in an easily accessible account and don't try to chase inflation.

Tom

[saver17]

If this represents your emergency fund, then when you get to about 6 months of expenses saved in this account you will want to do some investing.

Otherwise your savings rate and interest earnings will not keep up with inflation.

Thanks I will keep that in mind

[Jluke]

While I understand the concern of inflation, investing an EF in anything other than savings is not something I would do or recommend. I hate looking at my EF sitting there earning a paltry 0.2%, but it is an EF, not an investment. Trying to make another 0.8% by moving it to Ally savings would cause issues for my wife if I died. Not worth chasing. Investing it in my 60/40 taxable account would create downside risk and with my luck I would need it when the market tanked 20%.

Just leave it in an easily accessible account and don't try to chase inflation.

Tom

correct - I edited my original post as what I was thinking was not clearly stated. EF always remains in savings; invest future new money.

[snafu]

saver17 welcome to SA. We're a pretty diverse group with different viewpoints and experiences. Delighted to learn you are concentrating on paying off CC debt and hope you've explored the possibility of 0% interest CC .

Is there anything you no longer use or need that can be sold to move your plan forward? Opening an electronic savings account is excellent. I started funding my savings by 'paying myself first! I sent 5% of every dollar from every source which included monetary gifts for birthdays, Christmas, tax rebate and earnings 1st before allocating sums to bills [needs] and shopping/entertainment [wants].

I'm confident if you stick to your plan you will accomplish your goal.

[saver17]

saver17 welcome to SA. We're a pretty diverse group with different viewpoints and experiences. Delighted to learn you are concentrating on paying off CC debt and hope you've explored the possibility of 0% interest CC .

Is there anything you no longer use or need that can be sold to move your plan forward? Opening an electronic savings account is excellent. I started funding my savings by 'paying myself first! I sent 5% of every dollar from every source which included monetary gifts for birthdays, Christmas, tax rebate and earnings 1st before allocating sums to bills [needs] and shopping/entertainment [wants].

I'm confident if you stick to your plan you will accomplish your goal.

I'm just looking to get to June so I can really start saving more money. I have a trip to NYC in April and a wedding to go to in May so not much will be saved.

But I get a financial boost in June because I don't have to pay rent that month. So I can dump a large chunk in my savings and eliminate the remaining credit card balance

[disneysteve]

I have a trip to NYC in April and a wedding to go to in May so not much will be saved.

This statement concerns me.

Savings should happen FIRST.
Spending should happen with what remains.

If you fall into the pattern of spending first and saving what's left, you'll often find that very little gets saved.

Flip it around. Save first. Make it automatic if possible so that you never even see the money. Build your budget and your spending and travel on what you are left with after funding the savings.

[saver17]

This statement concerns me.

Savings should happen FIRST.
Spending should happen with what remains.

If you fall into the pattern of spending first and saving what's left, you'll often find that very little gets saved.

Flip it around. Save first. Make it automatic if possible so that you never even see the money. Build your budget and your spending and travel on what you are left with after funding the savings.

Yeah that makes sense but I just don't know how much I will need to spend in nyc so I just decided to do it once I arrived back home

[disneysteve]

I just don't know how much I will need to spend in nyc

It's important to have a plan for whatever you do. Travel is no exception. Going on a trip when you don't know "how much I will need to spend" is setting yourself up for trouble.

Make a budget for the trip and stick to it. How much is the transportation to and from NYC? How much is your hotel room? If driving, how much is parking? How much will you need for subway/taxis/Uber to get around while in NYC? How many meals will you be having there? How much do you have to spend on those meals? Will you be doing any activities that have a cost like seeing a show, going to a museum, etc?

Plan it all out in advance so that you don't overspend when you get there.

[saver17]

It's important to have a plan for whatever you do. Travel is no exception. Going on a trip when you don't know "how much I will need to spend" is setting yourself up for trouble.

Make a budget for the trip and stick to it. How much is the transportation to and from NYC? How much is your hotel room? If driving, how much is parking? How much will you need for subway/taxis/Uber to get around while in NYC? How many meals will you be having there? How much do you have to spend on those meals? Will you be doing any activities that have a cost like seeing a show, going to a museum, etc?

Plan it all out in advance so that you don't overspend when you get there.

It's a day trip. I know we will eat dinner and get on the tour bus in addition to the bus ticket to get to nyc and some cab fare. Then maybe some shopping

So it's hard to say