[originally posted Thursday, June 28, 2007 7:14 PM]
So, almost every personal finance blogs I’ve come across talks about the high-yield savings accounts…HSBC, ING Direct, Emigrant Direct. There are also lots of money market accounts and CDs out there with really good rates. You’re supposed to put your “emergency fund” in a stable account like that…put away at least 10% into a fund that can be accessed ASAP if it needs to be.
This is sort of going back to my last post, where I wondered if it was a good idea to pay down my loans as fast as I can. In the long run, I suppose, “future me” will have more money, since less money will be spent towards interest payments. “Present me” mentioned last post how I don’t like the idea of having barely any actual money. Of course, since my student loan interest rate is almost twice that of my savings rate, it seems like I’ll have a lot more money in the long run if I pay down as much as I can. I guess the question I’m asking myself (and anyone who reads this blog): How much money is “enough”? I mean, if I want to just have some money in my checking account for bills and other expenses, and some money earning interest for emergencies, how much should that be? I’ve calculated that my expenses per month at least are less than what I’m making, even when I am putting money in my 10% fund and my Roth IRA. So that’s good. Should I put the rest into my loans? And should I take money out of my savings to pay down my loans? It’s hard to figure out what to do.
I’m also debating getting the Electric Orange Account from ING. It’s an interest-bearing checking account, which is pretty impressive, but I suppose I don’t need to be keeping too much money in a checking account. Then again, every little bit counts! I’m not sure about the hassle of switching over.
Lastly, I’ve noticed a lot of people post about referral bonuses from ING Direct. Basically if someone joins from a referral and puts in at least $250, they get a $25 bonus! And my happy part is I get an extra $10…so that’s pretty cool!
So, let me know if you’re thinking about opening a savings account with them (with a comment or from emailing me) and I’ll send you a referral.
And anyone who has gone through the ridiculousness of student loans and has any words of wisdom for me or others reading this, please post!