Financial Information
Where should I put my money – Money Market Deposit Account, CD, or Online Savings?
Question : Where should I put my money – Money Market Deposit Account, CD, or Online Savings?
I’m 24, live in the bronx area of NYC, I have $ 9000 in Savings which I do not touch. I always manage to keep $ 1000 in checking and I have $ 100 put into Savings once a week by my bank. I’m very good at saving money. My fiance and I live together, she has a lot saved up too, we only have four bills and the rent is the biggest one ($ 1150/month, everything included, not bad).
I’m turned off by 401ks, IRAs, anything thats meant for people to retire at 50, 60 years of age. I would like to live comfortably before then as opposed to having hundreds and thousands with only a decade or two left to live and spend it before dying, no thanks. Retiring before then may sound crazy or impossible to you but I’d like to think I have somewhat of a chance or potential if you will because I’m very, very good at saving money.
Now I like the sound of CDs, Money Market “Deposit Accounts” (not Funds, Deposit Accounts) and Online Savings. I may plan to access my savings like 1-3 times a month probably not, depending, I’m not a spend crazy person though and I mostly use checking. Some things concern me though:
*The FDIC Official website states Money Market Deposit Accounts are insured by them however my bank Chase says they’re not so that’s confusing.
*Are Money Market Deposit Accounts/CDs risky at all?
*Are Savings and Online Savings the same thing or not? I can access my savings account from my bank “Online”, so that’s why I’m confused about the name, sorry.
I basically want something like my Savings account but without the risk and pays a good/great rate of interest in return. I heard ‘Online Savings’ is something like that. Is this possible to find anywhere?
P.S. Please no SPAM responses about making money online or I will get mad. Thank you.
online money market accounts
Best answer:
Answer by yamafanda
Money Market Deposit Accounts ARE insured from FDIC.
i think they heard you wrong? here’s a similar situation (ALTHO NOT THE SAME)
http://answers.yahoo.com/question/index?qid=20080729100323AA6wonw
as for online savings, try asking around. personally i love my services at Citibank
https://online.citibank.com/US/JRS/pands/detail.do?ID=CitiUSA
Yep a bank CD is insured by the FDIC up to $ 100,000. Just ask your banker. Good ones provided by a credit union or decent commercial bank will offer somewhere around 5%. In order to get a return like this though you will probably have to tie up your money for a period of around 5 years. If you decide to pull the money out earlier there may be a fee.
Another option is corporate bonds. You may need to save some more money to get into these because they are priced in $ 1000 incriments. You will also need to set up an account with a broker to buy them. They are not FDIC insured, but many strong companies make extremely safe investments (GE, Walmart, Disney, etc). The advantage is that a bond can yield 6% -12% in this market. This will help you retire much earlier.
If you are serious about retiring young, buy some books on investing. You will need to work your butt off 5X or more longer to save enough money to retire if you are buying FDIC products instead of investing in stocks or bonds. Investing is really the way to go.