Tuesday, May 19, 2009

FNBO Direct Rate Update

It happened again, FNBO Direct savings account dropped their rate down to 1.65% APY. We still have most of our savings with them. I did not move the money over to stocks last month on advice from most of my readers. I regret not doing so, If had invested in the stocks I like I would have an extra $1000 now!

Time to leave FNBO Direct, anyone have any suggestions? 1.65% is just not worth the hassle of dealing with this online bank for such low rate. Perhaps mutual funds are a better choice?



HS

5 comments:

  1. You have a credit card balance and you're worried about the rate of return on your savings? I wrote an article that might apply to this.

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  2. I've debated signing up for Ally. http://www.ally.com/index.html

    What if you invested in stocks and the market went down, would you beat up your readers for losing 1k? I don't time the market when it comes to investing. Investing means you put money in when it’s down or up and leave it alone. Mutual funds are better than single stock any day. If you’re saving money that would mean you may want to use it at some point in time. Save money, don't lose it.

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  3. I think you need to keep that money in a savings account for your emergency fund. I agree with comment #1. If you invest in mutual funds, I hope you are doing so for the long haul. My husband and my mutual funds lost about $15000 last year. The loss reaffirmed my belief that investing in stocks is not a good strategy in the short term.
    Also, do you have well-funded retirement funds? If you buy any stocks, your retirement fund should be your first vehicle.

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  4. Interesting article, just shows what a mess our current financial situation really is.

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  5. I agree with comment no 1. Why do you have a savings account and credit card debt at the same time. And you are thinking of buy stocks? Always pay off your debt before investing on stocks. Stocks are a calculated gamble, just short of gambling.

    I would pay off my credit cards with my savings immediately. That will be your best and safest investment. Your return on investment on paying off your debt first will be equal to the interest you are paying on the credit card TAX FREE. So if you are paying 15% interest on your card, your return on paying off debt will be 15% per year, but tax free. Interest on savings are taxable, but not on debt. So it is even higher return than 15% and it is risk free.

    Think about it.

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