Comments on: Best Online Banks

By: Weekly Roundup: Checking Out Ally Bank Edition | Frugal Dad

Weekly Roundup: Checking Out Ally Bank Edition | Frugal Dad — Wed, 17 Mar 2010 15:57:53 +0000

[...] red truck!” That’s the exact expression and tone I use when dealing with irritating online banks and credit card companies that like to pull a “bait and switch” on [...]

By: How to Become a Millionaire in 10 Years | Frugal Dad

How to Become a Millionaire in 10 Years | Frugal Dad — Wed, 03 Mar 2010 04:45:31 +0000

[...] Banking [...]

By: Rebecca

Rebecca — Tue, 19 Jan 2010 11:53:45 +0000

“Emergency fund? if you don’t have any debts, it could be a good idea. But if you have any kind of debts, why would you invest your money at 1.75% when you probably pay over 8% on your other debts?”

If you don’t have some kind of emergency fund, what will you do when you have an emergency? Probably go farther into debt! Just my opinion, but if we had debts we’d like a little cushion while paying them off. Heck, even Dave Ramsey, the king of pay-your-debts-off-now, suggests having a baby emergency fund of 1,000 dollars before paying off debts.

By: Best Personal Financial Software | Frugal Dad

Best Personal Financial Software | Frugal Dad — Mon, 18 Jan 2010 21:36:33 +0000

[...] Banking [...]

By: Ask the Reader: How Safe is My WaMu Bank Account? | Frugal Dad

Ask the Reader: How Safe is My WaMu Bank Account? | Frugal Dad — Thu, 07 Jan 2010 19:39:07 +0000

[...] Banking [...]

By: fatimah

fatimah — Sat, 19 Dec 2009 00:10:08 +0000

What advise can any of you give for someone just starting out? I have student loans, mortgage payment, married and 1 child… I am very interested in saving but I want to know what is my best option..?

By: John

John — Fri, 18 Dec 2009 18:58:25 +0000

I totally agree with you Mike. That is why earlier this year after the bottom dropped out of interest rates I took about half my savings to pay off my house. I think it was a great decision because rates have only continued to drop since then, and I no longer have a mortgage so I have been able to save faster since then.

By: Mike

Mike — Wed, 16 Sep 2009 13:40:06 +0000

I really don’t get why people would put money at 1.75% interest rate?

Emergency fund? if you don’t have any debts, it could be a good idea. But if you have any kind of debts, why would you invest your money at 1.75% when you probably pay over 8% on your other debts?

Your best investment right now is to pay down your debts. Investing $1,000 for a year in a saving account will make you earn a big $17.50. If you take the same $1,000 and you pay down your 12% credit card, you will save (read earn) $120. That is almost 7 times your savings account return.

So here is my suggestion:
- open a line of credit account with no banking card access and rip off the checks (you won’t be able to use it unless you have an emergency). This is your emergency funds.

- take the money you would be saving for an emergency fund and put it against your debts (mortgage, credit card, personal loan, etc.).

You will save a lot more money in interest and you will still have an emergency fund available in case of big trouble.

Thoughts?

By: Financial Samurai

Financial Samurai — Tue, 15 Sep 2009 17:03:55 +0000

Well done FrugalDad. I subscribe to your philosphy whole-heartedly, and that’s why I write about having 3 seperate banks in “Going Broke To Win BIG.”

Protecting yourself from yourself is exactly how I treat my finances. I don’t have an online bank though, which may be smart of me to pitch for referral income. I just have 3 banks I can go in and speak to someone about my money.

My savings bank yields 4.2%/yr compared to just 2.5%% for my “Go Broke Bank” based on 5-YR CD rates.

By: Is Getting a Large Tax Refund Bad? | Frugal Dad

Is Getting a Large Tax Refund Bad? | Frugal Dad — Fri, 11 Sep 2009 10:08:53 +0000

[...] you dropped that $500 a month in an online savings account averaging a 3% yield, you’d have $6,100 after the first year. That’s $100 you’re [...]