Tuesday, April 20, 2010

Saving up for Vacation

Saving money is hard.

It's partially looking toward the future, holding out on purchasing that new purse, buying generic instead of brand name... and partially having enough to save in this economy.

If you're finally at the point that you can put away a few bucks every month, you're faced with the decision: what to do with it?

I found that with my bank, interest drawn from a savings account doesn't add up to much, but if I add it to my checking account, it'll be used to pay bills or buy groceries. The piggy bank is great for saving, but there's no interest at all.

I went on a search.

I searched for "saving money" in the google bar, and came across thedigeratilife.com - 55 best ways to save money. I clicked and started reading.

Tip #2 - Keep money in a hard-to-access, high interest savings account so that the funds are harder to spend. Use your checking account for your everyday expenses but “hide” the rest of your money elsewhere, where you’re not tempted to use it.

This is exactly what I was looking for. I clicked.

According to thedigeratilife.com, I could put away my money, and have it work for me, without investing in long term stocks and investments. This chart compares online banks, and sorts them by APY Rate. Some have minimum balances, some don't.

Online Bank
APY Rate
Min. Balance
EverBank 2.25% $1,500
Smarty Pig 2.01% $25
Ally Bank 1.29% (Updated 04/06/10) $0
FNBO Direct 1.25% $1
WT Direct 1.16% $1
HSBC Direct 1.10% $1
ING Direct Savings 1.10% $1
ING Direct Checking .25% to 1.25% $1
E-Trade 0.40% $1
Bank of the Internet - $1
Dollar Savings Direct 1.30% $1,000
Citibank e-Savings 1.01% $100
VirtualBank Savings 1.01% $1,000

Of course, I wanted to use Everbank, the highest interest one, but didn't have a whopping $1500 to drop just yet. I clicked on SmartyPig to find out more info.

It took about 5 minutes to set up a new account, the interface was easy to navigate, and I put $100 in, and set up a recurring monthly deposit. SmartyPig even has a savings calculator where you can enter a goal date, how much you want to save, and they suggest a deposit amount to reach that goal in the time frame.

As I was entering my information, a screen popped up. I read that by May, they are RAISING the APY rate if your savings is under $50,000. Wow. That's me!

I'll keep you updated on how it's working for me, but do the research for yourself, you'll be happy you did.

No comments: