Is it alright to put some of my savings into money orders addressed to myself?

Question

I would like to put away some of my savings since I'm only allowed to have a certain amount in my bank account. Would it be safe to purchase money orders and then address them to myself and put them in a safe deposit box? I had intended to address both the money orders and receipts to myself, then put the money orders in a safe deposit box at my bank and keep the receipts for myself in a safe place in case any damage or disaster might destroy the money orders. I'm not sure if I'm going about this the right way. Could anyone please give me a few suggestions? Thank you so much.

Answer 1

That is not something you want to do and I'll explain why...

1. It costs money to purchase money orders. If you're lucky, your bank might do it for free. Otherwise, Walmart would be your next best bet.

2. Money orders are only good for 3-6 months depending on where they are issued. At the end of that time period, you'll have trouble cashing them and might loose all your money - or you might have to go through a long process of the government's unclaimed property system.

3. You're not earning any interest.

4. It costs money to rent a safe deposit box and the items you store in there are not insured by the bank. A few years back, there was a flood in St. Louis and many banks safe deposit boxes were flooded as well. Many people had baseball cards and other valuable items that were destroyed...none of it is insured. Keeping the reciepts will not do you any good if the money orders are destroyed. You cannot cash reciepts and the bank cannot re-issue the money order with only a reciept in your hand. You could stop payment in some cases, but that would cost $20-30 per money order.

So if putting your cash into money orders is a bad idea, what else should you do with it?

1. Open another bank account. In most cases, as long as you do not make more than $10 in interest per year, the bank never reports the income to the IRS. Due to privacy laws, nobody would ever know you have a 2nd bank account.

2. Buy government savings bonds. They earn interest.

3. Open a brokerage account online at Zecco.com or Scottrade.com and buy shares in something safe like an index fund. To keep things simple, just buy some shares of QQQQ, which is a fund made of up the largest 100 stocks in the Nasdaq.

4. Purchase silver and store that somewhere. You'll get a better return on your money than letting it sit in an unchased money order.

5. Do some shopping for items you know you'll need and spend some of the money. For example, buy some gift cards at gas stations, grocery stores, and Walmart. Also stock up on items that go on sale like laundry detergent. The purpose of doing this means you will lower your cash on hand and get items you're going to use anyway at the cheapest prices.

Answer 2

Have you thought about purchasing a CD (certificate of deposit) with the money? You could purchase one through your bank or any bank. You purchase it for a certain amount, say $1000, and redeem it after a period of time that you choose. You then have the money you put in plus the interest gained.

You could also just open a separate savings account with the money and keep it in there. Try an online bank that earns a high interest rate like ING or GMAC. I have an account at ING.

If all else fails, I guess you could always just stuff the money under your mattress...

Answer 3

f you have enough money that the bank will not allow you to save any more, and you have ideas like the money order thing, what you need is a financial adviser. I was in a similar position, and was told by my account, of a person who could be trusted.

Try to find such a person. Be careful, not all financial advisers look after you, as well as themselves. Ask around, and get references. As much as I dislike lawyers, they can be a good source. Also doctors, and others who have money to watch over.

Answer 4

Dude,

Open a off shore account, deposit the funds into it. Higher interest rates than government bonds. Please note it is not FDIC insured!!! Putting you cash into a money order is not great. No Interest, and they expire. If your trying to "remove" money from your name start a overseas corp and fund it with your over seas account and then you have a far amount of protection in a event of a divorce.

Some stock brokers have money market account that pay good interest and they purchase private insurance to insure your money.

Answer 5

You could put the cash in the safe deposit box.
Um...Doesn't money orders expire after 2 years?

Answer 6

I wouldn't do it. Money Orders expire AND they can bounce. They are only as good as the company who issues them, of which a couple have gone belly up.

I would recommend purchasing government savings bonds. they earn a guaranteed rate of return and are easier to liquidate than precious metals.

Answer 7

why not buy some gold coins off ebay, then sell them if you want to cash in. At least that way, you will gain some appretiation, probably more than you would make with bank intrest.

Answer 8

why spend the money on a money order? just open another savings account.