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Money Market Account

Old 01-18-2006, 06:34 PM
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Default Money Market Account

I am looking for a good money market account to basically set up a rainy day fund. I've already got it established in a regular savings account, only a couple thousand bucks right now, ultimately I would like to have 5k-10k in a liquid fund that won't give me big hits if I want to access it. I already have long term savings set up, the goal of the money market account is to have a fund that I can get to without taking a hit on the long term savings if the need comes up. I just took a new job, which for me is a big increase in salary, I was realitively comfortable prior to this increase, so I am looking at the new job as an oportunity to put up some money both for retirement, and my ultimate goal of starting business of my own. I realize that 5k isn't that much money, but I figure it should work for me as much as possible if it is going to be sitting still.
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Old 01-18-2006, 08:47 PM
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Default Re: Money Market Account

Now correct me if I'm wrong here: what are you making on interest....1 - 2 - 3%, then you are worried about taking a IRS hit if you pull a chunk of change out..... ...well why not just stash some money into a plastic container and dig a hole in the backyard? Because it's not like you are going to make any money from a few percentage points in a few years!
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Old 01-18-2006, 10:09 PM
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maybe I worded that wrong, what I am looking for is a high yield savings account to keep a small amount of money in so that it is available if I should need it. My thinking on this is if I have some money set asside for emergencies, I will be able to do things like utlize the savings from insurance with slightly higher deductables, or have some $ available should something happen with my job.
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Old 01-18-2006, 11:03 PM
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Default Re: Money Market Account

auto , buy a kick butt life insurance policy while your still young.
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Old 01-18-2006, 11:08 PM
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welder - 1/19/2006 12:03 AM

auto , buy a kick butt life insurance policy while your still young.
thats been taken care of for quite some time, grandfather got one started for me when I was really young, it was locked in for some time to come at very good rates.
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Old 01-18-2006, 11:59 PM
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Default Re: Money Market Account

autobaun70 - 1/18/2006 9:09 PM

I am looking for is a high yield savings account
Who isn't ! It's a very good plan. Google Money Market Account & you will have lots of choices. Probably around 4% which beats the local bank savings rate of approx .5%
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Old 01-19-2006, 12:16 AM
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Well if your trying to make 3-5% per year ABOVE the current inflation rate, then your going to have to make some slightly-risky investments. The best ones, which will mature over time as you get older, would be corporate bonds or open-end mutual funds. Some pay as high as 8% or 9% per year. As risky as it is, the Stock Market pays out a better return % than any other.
 
Old 01-19-2006, 05:23 AM
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Default Re: Money Market Account

Autobahn,

http://www.emigrantdirect.com/

I have accounts there. Its basically cyberspace. You open it online, link it to your EXISTING checking account, can transfer money in and out of it to/from your checking account at will, and customer service is good. You will have to follow explicit instructions to get the link working, etc. , which is a pain, but well worth it. And SAVE your username and password from the site so you don't have to keep calling them to retrieve it. Only jackasses do that . Like Me. Oh.... 4%

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Old 01-19-2006, 08:18 AM
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try bank of america . their setting up a 9 month cd for me .their mailing me the info as we speak.the interest rate is 3.5 %,but you can take any amount out that you want and there is no penalty im noy sure how much moneys needed to start account.
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Old 01-19-2006, 08:38 AM
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Default RE: Money Market Account

Try this one. 3.8% currently. http://www.ingdirect.com/osa_google/
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Old 01-19-2006, 08:55 AM
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www.ufbdirect.com
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Old 01-19-2006, 09:30 AM
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I would think you'll have a hard time finding anything much better than ingdirect at 3.8%. Most banks I've seen are less than 1% when under $15-20K.

Squids and Garrett, I don't believe that he's worried about making this money grow. It seems he has other accounts for that. This is WSHTF money. It's easily accessible, take no penalties, therefore you won't take from places that do charge high penalties.

BTW, WSHTF = When sh!t hits the fan.
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Old 01-19-2006, 09:44 AM
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ditto on ingdirect.com

For money markey they pay about the best and it is easy to get money into and out of.

Most other banks are going to pay squat for money markets accts.
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Old 01-19-2006, 09:50 AM
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Default Re: Money Market Account

the emigrant direct link i alluded to. 4% no minimums or fees. fyi
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Old 01-19-2006, 01:31 PM
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Default Re: Money Market Account

parkersal - 1/19/2006 9:50 AM

the emigrant direct link i alluded to. 4% no minimums or fees. fyi

UFB is the same for the High-Yield MMA.
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Old 01-19-2006, 01:34 PM
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Default Re: Money Market Account

You might find this site useful.

www.bankrate.com
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Old 01-19-2006, 01:59 PM
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Achieving a 3 to 5% real return requires more than simply taking on some "slightly risky investments".....don't even ask me about duration, volatility, Miller & Modigliani, efficient frontier, bankruptcy risk, liquidity discounts, market timing, etc.

Autobaun.......if you want it to be liquid and non-risky, accept today's low yields. If you are going to park this capital for a while and you have a stomach for risk.......open a Schwab account and buy some index funds, EFT's or open ended mutuals.
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Old 01-20-2006, 12:41 PM
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Default Re: Money Market Account

hey trey....my wife and i just did the same thing recently.....i'm about your age and understand exactly what you're talking about.

we went with metlife.....

www.metlifebank.com

good interest rate....easy to transfer to and from your checking account.....and a $50 new account bonus.

my brother in law went with ingdirect.com and i looked at it, and i clearly think metlife is better.....

HOWEVER, the better rate - 3.8% i believe - only kicks in with a minimum balance....it's either $2,500 or $5,000. i remember this being a variable from bank to bank.....to get better rates, they want you to deposit a certain amount.

check it out, and let me know if you have any questions.

chris
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Old 01-20-2006, 12:46 PM
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Default Re: Money Market Account

after a quick comparison of the two.....ing vs. metlife....ing is probably better due to the fact that they have no minimum deposit vs. metlife which requires a $5,000 deposit for the 3.8 interest rate.

as far as the checking account access/transfer, they are probably equal.

check it out:

www.ingdirect.com
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Old 01-20-2006, 12:53 PM
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neckbone - 1/19/2006 10:30 AM

Squids and Garrett, I don't believe that he's worried about making this money grow. It seems he has other accounts for that. This is WSHTF money. It's easily accessible, take no penalties, therefore you won't take from places that do charge high penalties.

BTW, WSHTF = When sh!t hits the fan.
exactly.....personally, i wanted something i can easily get my hands on WSHTF. a money market account is a great fit for us for that purpose.

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