Home
Log in / Sign Up
    Private Messages   Advanced Search   Rules   New User Guide   FAQ   Advertise   Contact Us  
Forum -> Household Management -> Finances
PLEASE HELP ME GROW MY SAVINGS!



Post new topic   Reply to topic View latest: 24h 48h 72h

amother


 

Post Wed, Oct 15 2014, 9:43 am
We b"H have about $30,000 in a savings account and are getting .84% interest. Where should I put my money so that it can accumulate more interest? We need to pay large bills within the next 3 years or so (house and tuition being the big 2). I'm so clueless and EXTREMELY overwhelmed. Please educate me. Thanks!
Back to top

amother


 

Post Sat, Oct 18 2014, 9:50 pm
Bump
Back to top

SRS




 
 
    
 

Post Sun, Oct 19 2014, 7:10 pm
My rule of thumb is that you don't invest money you need in anything non-guaranteed. The days of 6% money markets are long gone. .84% is respectable.
Back to top

Tova




 
 
    
 

Post Sun, Oct 19 2014, 7:24 pm
SRS wrote:
My rule of thumb is that you don't invest money you need in anything non-guaranteed. The days of 6% money markets are long gone. .84% is respectable.


Sad but true :-(. 7 years ago when my son was born I started a money market account in his name that I added to monthly with the intention of it growing to a certain amount after 20 years...interest rate fluctuated between 4 and 5%. Not anymore, now it's less than 1%.
Back to top

amother


 

Post Sun, Oct 19 2014, 7:26 pm
SRS- I like your rule of thumb.
Tova- that's so devastating!

Does anyone know how bonds/ government bonds work? Are they worth dealing with? What are the benefits and drawbacks?

Thanks!
Back to top

amother


 

Post Sun, Oct 19 2014, 7:30 pm
I just found my first savings passbook, from when I was about 6. I don't remember the numbers, but suffice it to say that in one year, my $20 deposit made a good few dollars. Compare that to my $5,000 in a (high interest!!) savings account that made less than a dollar this year Sad
Back to top

wife2




 
 
    
 

Post Sun, Oct 19 2014, 8:41 pm
Interest rates are very low and you can't do much better than that. Any money you need for expenses within the next couple of years, you need to keep accessible. You can put it in a CD or a savings account but that is generally your only option. You can get bonds for 5 years but even bond interest rates are extremely low now and you may not make so much.

Generally, you only invest money when you don't need it for the next 7-10 years. Some people will invest money if they don't need it for 5 years, but it is riskier if you need it and that year it crashes.

You can only grow money that you do not need. If possible, try to put aside a small percentage of your salary into savings that will be untouchable for the future (expenses like seminary, weddings, retirement if you don't have 401k through work, etc). The earlier you start saving, the more your money has time to grow. If you put aside a smaller amount in your 20's or a larger amount in your 30's or 40's, you will make a lot more on the money you invested earlier as it has time to gain interest and grow as you gain more from the returns over time.

For example, if your money doubles every 10 years, it looks like this:
Year 1: you put in $1000
Year 10: $2000
Year 20: $4000
Year 30: $8000
Year 40: $16,000
So if you only start when your 50, your money has less time to grow.

Being frum is expensive and many people can't save anything during their tuition paying years or can only start saving very little and mostly start once they have less tuitions to pay or their kids are out of their house. However, if you can really try to save and cut corners now, it will be very beneficial.
Back to top

amother


 

Post Sun, Oct 19 2014, 9:04 pm
Op, do you mind if I ask which bank gives you .84 percent? I'm looking for a high interest savings account, and that sounds pretty good.
Back to top

amother


 

Post Mon, Oct 20 2014, 4:37 am
Wife2, thank you for taking the time to respond.

Amother above, I made a mistake. It's .74, not .84. It's capital one 360. Good luck!
Back to top

doctorima




 
 
    
 

Post Mon, Oct 20 2014, 6:55 am
Sallie Mae is currently paying .9% on their money markets, and Ally Bank is paying .85%. Both are Internet-only, but are reputable and FDIC insured. They do have fine print about how many checks and withdrawals you can make per month, so make sure you read that before proceeding.
Back to top

amother


 

Post Mon, Oct 20 2014, 6:57 am
doctorima wrote:
Sallie Mae is currently paying .9% on their money markets, and Ally Bank is paying .85%. Both are Internet-only, but are reputable and FDIC insured. They do have fine print about how many checks and withdrawals you can make per month, so make sure you read that before proceeding.


Thank you, I will look in to these. Are they fixed rates or do they change?
Back to top
Page 1 of 1 Recent Topics




Post new topic   Reply to topic    Forum -> Household Management -> Finances

Related Topics Replies Last Post
Question about daylight savings time
by amother
6 Tue, Mar 26 2024, 9:53 pm View last post
Anyone get their neck hair/peyos to grow out?
by amother
6 Mon, Mar 11 2024, 3:46 pm View last post
How much is in your savings?
by amother
131 Wed, Mar 06 2024, 9:31 am View last post
Daylight savings coming up!
by mom923
9 Mon, Mar 04 2024, 6:09 pm View last post
How do I get a graph of savings rates over the last 5 years
by amother
3 Mon, Mar 04 2024, 3:14 pm View last post