Tuesday, December 20, 2005

Wasting money on the bank:

When most college students get paid, they either have their money directly deposited into their checking account or they get there check and deposit it into a checking account. If you are keeping some money in the bank for more than a few weeks, why would you leave it in a non-interest paying checking account? Secondly, why would you put it into a local bank's saving account where you earn less than 1.0% interest?

Transfer your money into one of the popular online banks, Emigrant Direct bears a 4.0% return and ING Direct bears a 3.75% return. These banks are both FDIC insured so you don't have to worry about losing your money or anything like that. They also do electronic transfer so if you need your money, you can just transfer it back to your checking account. ING also offers mutual funds and CDs you can invest in as long as you have a savings account open with them.

Every time you deposit money into the bank, the bank is automatically making money off of it by lending it to other people and charging them money on the loan. Shouldn't you make back some of that profit; you are the one giving them money to use. Use a bank that pays a decent interest rate on the money you deposit.


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