Many people have seen the advantages of opening a high yield savings account. The elevated interest rates and quick response to changes in rates at the federal reserve keeps those online deposits competitive. Given the low yields of most CDs, a premium is paid for having liquidity in order to take advantages of better rates in the future once the economy recovers.
Opening a high yield savings account is a good idea to store excess cash over and above an emergency cash balance held in a local savings bank. Typically a household should try to maintain cash in reserve of about six months worth of expenses. Not all households manage to do so but those who do should read on.
Think About Getting Higher Yields from Excess Emergency Cash
Having emergency cash tucked away in a savings account at your local bank is a good idea but a better idea is to take the bulk of the money held in reserve and stick it in a high yield saving account online instead. Emergencies don't happen every day, so it does not make sense to have your excess funds stashed in what amounts to a no or low interest bearing on-demand account. Smart money movers take those additional funds and deposit them in a no-fee online account at one of the high yield saving account banks. It only makes sense to do so.
Many Online Banks Used to Have Only Select Clientele
Some folks might be leary of using an online bank but many of the institutions online are either really ancient brands (Emigrant, Citibank) or names you easily recognize from heavy advertising campaigns (ING, Ally/GMAC). Besides these online savings banks are governed by the same Federal Reserve rules and restrictions as your local S&L. The only thing to be absolutely certain about before taking the plunge is whether the online bank is a member of the FDIC - which protects deposits up to $100K (although presently insurance is up to $250K since the banking crisis began - this is scheduled to end 12/31/09).
Understanding Roth IRAs
By: Richard Tyler | 11/12/2009As you consider your retirement fund, you have probably heard the term Roth IRA as an investment option. In this article, we will help you understand what a Roth IRA is and how it differs from a traditional IRA.
Good, Average and Bad Credit Score Range
By: FreeScore.com | 11/12/2009You think 600 is a good credit score? Thank again!
Manage Your Finances Using Christian Debt Counseling
By: Joshua Reynolds | 11/12/2009If you are feeling overwhelmed by mounting debt you may believe you are alone. Just watching the morning news about the state of our economy will disprove your suspicion. The monthly statistics about the numbers currently unemployed have reason substantially. If you are one of these thousands you may be unable to pay your rent this month. There is a high number that are Christian and looking specifically for a Christian debt counseling agency to help.
Bad Credit Home Loan Refinancing: A Hope For People With Poor Credit
By: Alan Lim | 11/12/2009If you are in financial difficulty and if you need finance, then you can end up all your troubles through bad credit home loan refinancing option. Know more about such loan option here.
How To Buy Auto Insurance Online
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Credit Card Debt Solution - 3 Financial Choices To Put Your Finances Back On Track
By: John M. Stevens | 10/12/2009If you're reading this article, you're probably a consumer deeply in debt. But don't feel discouraged. Not only are you not alone, but there are different financial alternatives to help you put your finances back on track. The following brief list examines two popular options consumers choose to get out of debt: debt settlement and credit counseling. Take some time to become familiar with the way each alternative works and how they’re different from each other. CREDIT COUNSELING
Learning to Save Money the Easy Way
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Your Best IRA CDs May Be Only Part of Your Retirement Porfolio
By: Jim S | 28/11/2009 | InvestingWhat is the best IRA CD for your retirement account? It's hard to believe but just about any low risk fixed income security can work when combined with a risky asset portfolio? There have been numerous examples in the last several years of people who are unfortunately outliving their nest eggs because of an overly conservative investment strategy. Ditching Your Risky Asset Portfolio Too Soon Is Risky People living on a fixed income stream are relying on their interest income to p...
Choosing An IRA versus CD -- Why Put Both Together?
By: Jim S | 27/11/2009 | InvestingSo the question came up, "IRA versus CD? Which is better?". The world of finance has been turned upside-down in the last eighteen months and people don't know what to do. Many have watched their investments tank, either due to the economy, corporate malfeasance or financial fraud. Those who were lucky to dodge those bullets have watched the stock market go from the mid 6000s on the Dow up to over 10,000 in just a couple of months. How can this be? What Is Causing the Market to M...
How A Kids Savings Account Raises Family's Financial IQ
By: Jim S | 15/11/2009 | ParentingYoungsters with a kids savings account will have a whole world of knowledge greater than their peers. Keeping track of finances on the computer, managing money, and maintaining good credit ratings are all the trademarks of financially swift parents. Less swift parents will not know the lessons needed to teach their children good financial habits such as keeping good credit, managing money, and tracking finances on the computer. How a parent who is not financially educated can start ...
Your Bank's High Return CD Could Be a Trap for Your Money - Shorter Duration May Be Best
By: Jim S | 13/11/2009 | Personal FinancePutting your money into a high return CD can be a risky place for your money if the bank you give you money to is in danger of insolvency. High returning CD and savings account offers are all over the media these days. Some of these products are offered by TARP or financially unstable banks. If it is FDIC insured, should you care? CDs Offer Slightly Higher Return, But What Is the Catch? Consider a certificate of deposit made at a savings bank. That money is taken by the institutio...
High Interest Rate Savings Accounts Online - Why Are They So Much Better?
By: Jim S | 07/11/2009 | InvestingBanks offer a high rate savings account online because of the economics afforded by being on the internet. Because these online banks are able to attract and service a large number of customers without the overhead costs associated with brick and mortar facilities they are able to make high interest rate savings account offers.
The Horrible Performance of the S&P 500 vs. High Rate CDs
By: Jim S | 07/11/2009 | InvestingThe notion that an average high rate CD portfolio with 6 month maturity would beat the performance of the S&P 500 is crazy, and yet it has happened. When future investment management students look back at this period in financial history, they will be humbled at how badly the stocks of the S&P 500 companies have performed over the last decade.
How Savings Accounts for Children Build a Foundation of Good Financial Skills
By: Jim S | 02/10/2009 | Personal FinanceSavings accounts for children open a whole new world of learning and discussion for both parents and children as they explore the world of finance. The world of finance is growing and changing rapidly, and as we have seen in the last year can be a great source of heartache for families. At the end of this article are some links to simple free lessons you can use to talk to your children about finance.