About a saving account and APY

Anonymous · ‎08-04-2018

How exacly does that work?

So an Alliant Credit union high yield accounts give me. 1.70 in saving and .60 in checkings .

Let’s say for example I have you have 1000.00 in a 1.70 high yield account that means I’ll get $17 by the end of the year... right? How is that even worth it when you can put those 1k in an investment account and get more that that in a month or day or so on....

$17 is chump change and even if it’s 10,000 that’s only 170......

Or am I wrong?

Kforce · ‎08-04-2018

Your math is OK

A hammer and screwdriver are both tools. (Used for different things)

Savings and Investments are both tools. (Used for different things)

Anonymous · ‎08-04-2018

@Kforce wrote:
Your math is OK
A hammer and screwdriver are both tools. (Used for different things)
Savings and Investments are both tools. (Used for different things)

Good analogy, basic savings and market investment are different vehicles that serves different purpose, they're not mutually exclusive.

blunderer · ‎08-04-2018

You are so right and I agree 200%.

However, Alliant comes in handy for me for emergency funds. I like to have a certain amount of cash available for unexpected expenses so it's nice that these funds are also earning interest even if it's minimal in comparison.

Anonymous · ‎08-05-2018

@Anonymous wrote:
How exacly does that work?

So an Alliant Credit union high yield accounts give me. 1.70 in saving and .60 in checkings .

Let’s say for example I have you have 1000.00 in a 1.70 high yield account that means I’ll get $17 by the end of the year... right? How is that even worth it when you can put those 1k in an investment account and get more that that in a month or day or so on....

$17 is chump change and even if it’s 10,000 that’s only 170......

Or am I wrong?

Well, I know that in a year or more that my 1000 will still be in my savings (with interest.) In an investment account, I may be at zero. I hit zero in 2000 and 2009, so that 1000 plus interest looks pretty good to me.

Anonymous · ‎08-05-2018

@Anonymous wrote:
@Anonymous wrote:
How exacly does that work?

So an Alliant Credit union high yield accounts give me. 1.70 in saving and .60 in checkings .

Let’s say for example I have you have 1000.00 in a 1.70 high yield account that means I’ll get $17 by the end of the year... right? How is that even worth it when you can put those 1k in an investment account and get more that that in a month or day or so on....

$17 is chump change and even if it’s 10,000 that’s only 170......

Or am I wrong?
Well, I know that in a year or more that my 1000 will still be in my savings (with interest.) In an investment account, I may be at zero. I hit zero in 2000 and 2009, so that 1000 plus interest looks pretty good to me.

Yes! This times a thousand.

fuzzle · ‎08-05-2018

doesn't help that the rate is well below inflation, the central bank has been stealing from the poor to give to rich for long time

Anonymous · ‎08-07-2018

Can you afford to lose part/all of the cash? If so, then invest it.

Is this your emergency fund that might need to be tapped at a moment's notice? Then put it in a FDIC insured savings account.