Homesteading Forum banner

1 - 13 of 13 Posts

·
Accidental Farmer
Joined
·
14,837 Posts
Discussion Starter #1
i was doing the budget for the month and we are going to have quite a bit extra at the end of the month, usually I throw extra into a regular savings account but I really want to start saving for a piece of land all my own that I can throw my trailer on...So, say i have just over a thousand to invest with, what should I start out with that can get me some good intrest rates? What should I look for so that when I go to the bank i can sound at least halfway educated in what I want and so that I'm not talked into something I don't want.
 

·
Registered
Joined
·
1,096 Posts
I'd second using ING for your savings. We have accounts with them and they pay much better interest than most local banks. Your choices of savings methods will depend on how long you are planning on leaving the money in the bank and if you will need it in case of potential emergencies.

Regular savings pays lower rates but is always almost immediately available. You can purchase CD's at good rates but your money is locked in for a certain amount of time unless you pay a penalty for early withdraw. Mutual Funds can return very good rates but are generally for long term investments and can loose money at some points and then gain back -- they are not usually used for short term savings. You can also buy individual stocks (www.sharebuilder.com) but then you have to decide what stock to pick, etc. and again this would be considered for longer term investing.

Ken in Glassboro, NJ :)
 

·
Halfway, OR & Wagoner, OK
Joined
·
3,306 Posts
I've gotten onto the savings bandwagon quite late in life, but it's still fun. Get on the website Bankrate.com and they have a wealth of information and daily comparisons of what banks are paying for interest. There are some great online banks.

You can also open better accounts (with money you can leave in there for several months or years), and really start making money on your money.

The thing I learned is that TIME is what adds up. And depositing a regular amount, every single month--even if it's small.

I love the savings calculator on Bankrate.com. You can enter a beginning amount, then enter how much you intend to save per month and at what interest rate. It will tell you how much you will have in 20 years! Year by year is shown too.

Even $25-$50 a month, saved regularly yields a whole lot over time.

They also suggest having the savings amount paid automatically, just like a bill. I haven't done this yet, but I'm intending to.

Good luck! You will never regret having a savings account. It is a great source of security and personal power.
 

·
Premium Member
Joined
·
7,215 Posts
Some good thoughts above, but if you are eligible for membership in a credit union, you might want to check those out too. Ours is providing rates as high as 6% just now, but it is a tiered rate that rewards the bigger savers. It's paying 4.5% for any balances, however. Unlike a CD, you can get your money at any time with this rate/plan.
 

·
Premium Member
Joined
·
6,776 Posts
Check CD rates and also check HSBC Direct. They are offering a better rate than ING (I have accounts at both).
 

·
Halfway, OR & Wagoner, OK
Joined
·
3,306 Posts
Here is the link to that savings calculator.

SAVINGS CALCULATOR

Compound interest is key.

For instance, I just entered $1000. initial savings and $50/month saved at 5.5%.

In 20 years you would have contributed $13,000. of your own money.

But it would be worth $24,778.!!! This is just an example. It would be more if you put it into higher interest rate accounts--the secret is leave it there! Don't touch it!
 
1 - 13 of 13 Posts
Top