Re: Do I have a problem? ;)
02-06-2012 08:24 PM
SynnDiesel - with both tables, it's really easy to update and keep track of what I have.
At a glance, I can see what month & year CD's will mature.
At a glance, I can see how much money will be "maturing" in a year. The goal is to have at least 10k a year mature. Then I will grow that to 20k a year. And so on.
And so things don't get way out of hand, once I have about 4 CD's a month maturing, I will start adding paycheck money to them instead of opening new ones.
Some of the CD's have more money in them than just a $100 --- when I find that I have a stash of money, or can gather something together, I will open an "oddball CD" somewhere - whoever has the highest rates for that amount of money.
Yes, Ally lets you open up CD's for a $100. They have two of mine right now. Ally's best deal at the time I opened mine were to do a 4 yr, change your rate CD. During the course of 4 yrs, I can up my rate to whatever is current two times. A thing to note about Ally's CD's - they deposit interest quarterly, not monthly BUT you can see what you are earning as it accrues before it's deposited quarterly.
85 cents is more than or equal to any savings account out there. So why not put it into a CD.
One of the perks to my having done CD bingo is I had two CD's that equaled about 4k at maturity that I cashed out and put into my house account. I was soooo close to reaching a 20% down payment, plus closing costs and those CD's made it possible. (House deal - no go, but those CD's certainly helped out!). So now I am scouting for a really good rate (hahaha) to reinvest that 4k I had cashed out.
With the varied interest rates, I am earning substainally more than $22.10 a year. I know it's hard to calculate just how much.... If you really want to know, PM me. I will tell you how much I earn in interest. It may only seem like pennies and nickels initially, but those guys turn into dollars and add up!
And I LOVE my excel tables - it does the math for me.
cassembler - I love the idea of a hidden account. I actually have one called a secret savings account that I look at once or twice a year. I don't do ATM cards or check visa cards. So all of my bank accounts are protected that way.
Knowing in the back of your mind that you will have access to emergency cash every one to two weeks is an amazing security blanket. And being able to go to the bank and have them print off a sheet showing all accounts (this includes CD's) to show to lenders helps lenders have confidence that you are financially responsible, can save, and definitely have reserves if things go wrong.
Maybe I shared too much information.
I just find it easy to save money this way and the rate is better than most savings accounts. And it adds up quickly. The CD's and the interest. Use a table or two in excel and it's easy to track when, where, and how much will mature.