2006-10-03 05:21:09 · 8 answers · asked by sinok 1 in Business & Finance ➔ Personal Finance
I've been with ING for years, and it's amazingly easy to save that way. I just have it pull $50 out of my bank account on paydays. Then I forget about it. Every few months, if things get tight, I have a few hundred dollars in reserve. Can't beat the interest rates, either.
2006-10-03 05:30:14 · answer #1 · answered by mrmatt1476 3 · 0⤊ 0⤋
They are OK if you are searching for a very safe place to put that portion of your investing cash that you need to be readily available and safe. If you are seeking a long term investment, you are really losing money (or at best breaking even) by putting it in a savings account.
Figure that on a $100 deposit, you will get $5 return. Of that $5 you will need to pay around $1.00 in various taxes (federal, state, local). You may pay more or you may pay less. Still the concept is the same. That leaves you with $104 after taxes in your account. Now our friend inflation kicks in. Things cost more this year than they did last year. That $104 will give you the same purchasing power this year that your $100 did last year. All you did was break even. If you fall into a higher tax bracket, you would have lost money. Any uptick in inflation and you start to fall behind.
You need to get your money invested in a manner that grows faster than inflation and provides tax protection. A previous response mentioned the Roth IRA. This is a very good option for most people since your contributions grow tax free until retirement, you can access the funds (again tax free) for qualified education expenses, and there are no age limits. For full details and a plan customized for you, seek the advice of a personal financial adviser.
2006-10-03 12:42:38 · answer #2 · answered by troythom 4 · 0⤊ 0⤋
I have an ING Direct account and it is completely legit. It is a saving vehicle and shouldn't be used for every day cash. Take some money out of each paycheck and put it into ING Direct or someother account and save some money.
2006-10-03 12:36:53 · answer #3 · answered by Captain Trips 2 · 0⤊ 0⤋
There are many to choose from, but the overall ease of use and transferring makes them a good bet. ING, Citibank, Cap 1...
I alos like that automatic withdrawrals can be set up from my checking account every week so I don't need to think about it.
2006-10-03 12:23:21 · answer #4 · answered by jlefer 2 · 0⤊ 0⤋
Yes. They are a great way to save and a great place to house your Emergency Fund and other short term savings. You wouldn't want to save for retirement in one, but for short term they're great. I particularly like ING because they allow you to name your own sub-accounts which makes tracking your savings goals much easier.
2006-10-03 12:34:57 · answer #5 · answered by personal_finance_101 3 · 0⤊ 0⤋
THey are a great savings tool, the only down side I have found is it takes several days to transfer money OUT of that account
2006-10-03 12:23:23 · answer #6 · answered by Jenyfer C 5 · 0⤊ 0⤋
I don't know... I've always been weary. I think you can get like 5% on roth IRAs, too, which is probably a safer route and you don't have to pay capital gains tax.
2006-10-03 12:22:24 · answer #7 · answered by ryguillian 2 · 0⤊ 0⤋
They are completely safe and do pay the interest advertised. Just be sure they are a respectable company and they are FDIC insured.
2006-10-03 13:06:03 · answer #8 · answered by ms.chic 3 · 0⤊ 0⤋