Forums » Money and Finance

• Consumerland Admin

  

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  August 21, 2010 12:36 PM CDT

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  How safe is your money? you would think that a bank money market would be safe but it is not. you can lose money on it. if you check with the bank the fund is not guaranteed. also you need to know what the fund is invested in. for example commercial paper, adjustable rate loans, treasuries. it is hard to get the straight stuff from the financial people. you would think it preserves at least your principle but it doesn't.
• Consumerland Admin

  

  • 144 posts
   

  August 21, 2010 12:36 PM CDT

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  I personally like doing online savings accounts. Its free, easy to set up, and usually pays a good rate. However, now its only paying 3% because the turmoil in the market, but usually its around 5%. The one I like to use is INGdirect.com. If you decide to use it, let me know and I'll send you a link where you can get $25 dollars for free for initially investing $250.
• Consumerland Admin

  

  • 144 posts
   

  August 21, 2010 12:37 PM CDT

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  I thought about the online only banking. What's the deal? It seems like you get a betterrate for sure, what are the drawbacks? Obviously you can't walk into a branch office. They are FDIC insurred, so that is comforting, but what are the drawbacks?
• Consumerland Admin

  

  • 144 posts
   

  August 21, 2010 12:37 PM CDT

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  You should research what the account invests in before putting your money in it. Look at the investments of these accounts they probably invest in government backed instruments so they're pretty safe. Your interest rate will change, just look at historic returns. ING Direct and Etrade have popular online Money Markets