03-01-2012 07:27 AM
crunching_numbers - That is an idea worth looking at! Will you pm the information on who you use?
Just off the top of my head....the benefits of doing the CD's vs the bonds:
1. No start up fees (to a broker or anyone else).
2. Interest is paid monthly.
3. Interest is usually a fixed rate. (Even with bonds, the rates can fluctate.)
4. You start earning the interest right away. (With bonds, you have to wait on other factors, like the broker to process the deal. There were other variables I had noted when I looked into bonds before, but I do not know if those apply to your broker.)
5. Taxes are sooo simple! You don't have to figure out any additional fees, etc.
6. The money is guaranteed and backed up by the FDIC/NDIC (if you purchased with an insured institution). Bonds are not "guaranteed". They are not likely to defualt, but there is no promised land.
crunching_numbers - Please send me the information and I will compare the two ideas.
03-06-2012 06:07 AM
AMEX personal savings already lowered their % from .9 (which I locked in) down to .75
03-08-2012 01:21 AM
03-08-2012 04:18 AM
Found that two of my Ally CDs were bumped up to $200/ea, instead of having 5 $100 CDs. Whoops. I'll get this right eventually.
03-15-2012 10:38 AM
I think this idea is great! Not only did I just decide to start doing this, but I essentially back date a hundred dollar cd on the first and 15th back to january by creating maturity dates starting jan 1, 2013. I think this is a great idea! I went with navy for now and using their club accounts because I am under the max for the accounts. Thanks for the great idea!
03-16-2012 04:42 AM
That's excellent. It's really a fun way to stash cash, that you do NOT need RIGHT NOW. So if you have your debts paid off and have an EF in hand, you can't lose doing this.
Anyone play with ee-bonds or i-bonds?
03-16-2012 06:12 AM
Repo-ed - I looked into those when I was doing a lot of research on investing. To me, the numbers did not work. IF I was to invest in the bonds, I'd have to print out a paper certificate and lock it up so it doesn't get lost or forgotten. And it would definitely be a LONG term strategy.
I looked at tax free munipal bonds awhile back. Did a lot of research into those. On the surface they sound great. But overall, there's no guarantee there will ever be a return on your investment. I watched their performance for several months and it was gut wrenching to watch the value go up and then plummet... And the ones I looked into all required several thousand to get a piece of the action. I didn't have several thousand at the time.
So for now, I am sticking to CD's, short term and long term ones. At least I know the balance will go up (and not down) and I will have easy access to cash if needed every few weeks as the short term (one year or less) CD's mature. I have only cash on that once - but the short term CD's were intended for a specific purpose.
I just started doing "even out" payments on the Navy CD's. I LOVE being able to add funds to existing CD's!
03-16-2012 06:25 AM
Are EE bonds not guaranteed against inflation?
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.