Ok, so I hear Washington Mutual is heading downhill..
Originally Posted by Profink
You guys should check out ING Direct. It pays more interest then any local bank, offers a checking account that also offers interest and has no minimums. I keep a local bank just so I can have some paper checks and extra ATM access but most of my money is kept at ING.
worry about any bank that offers interest rates that are 'out of the norm' for the market. Ing has an excuse because they don't carry the liability of retail locations.
Originally Posted by henry j
i said i work there..
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Originally Posted by 06MagneticZ
I bury my **** in the backyard for savings. Checking goes in a sock somewhere.
Im hood rich!
Im hood rich!
Someone at my work said they ACTUALLY did this.. OH MAN LOL
Originally Posted by dspiel
Well there is many ways to argue the point but I'll give you some examples to help understand. I'm too tired to write out a complex answer but this should suffice.
Lets say you have $100,000.00 in a high yield savings account at (5%) interest.
Over a 10year time span, you will have made over $50,000 in interest, which seems pretty good right? Wrong.
The average inflation rate from 1989-2004 was 4-5% and since 2004 it has gone down hill. So all that interest you are making is pretty much void and lets not forget that you are also paying taxes on any interest made that is valued over $100.
If you want to invest your money, it is best to invest it in things that provide a residual source of income. Buying a house, renting it out, and then selling it is way more profitable over 10 years. A the value of house doubles every 7-10 years.
Lets say you have $100,000.00 in a high yield savings account at (5%) interest.
Over a 10year time span, you will have made over $50,000 in interest, which seems pretty good right? Wrong.
The average inflation rate from 1989-2004 was 4-5% and since 2004 it has gone down hill. So all that interest you are making is pretty much void and lets not forget that you are also paying taxes on any interest made that is valued over $100.
If you want to invest your money, it is best to invest it in things that provide a residual source of income. Buying a house, renting it out, and then selling it is way more profitable over 10 years. A the value of house doubles every 7-10 years.
Yes inflation goes up every year, so does minimum wage and your annual salary increase to compensate. An interest bearing account shouldn't be affected by inflation, those are two totally different things. I understand what you're saying though.
A savings account is a simple way for people to earn interest on their money. Buying land is a great investment but not everyone has the financial ability to do it, therefore only a certain few can and will do it.
Oh BTW house values don't double every 7-10 years, if they did they we would all be millionaires by now.
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