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It is always wise to have a secure financial foundation. Here is a place to ask questions, exchange ideas and share information on how to make the most of your money.


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lbeck  
#1 Posted : Monday, July 20, 2009 11:31:39 PM(UTC)

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This used to be a no-brainer. I have kept a "high-yield Money Market" account with Wachovia for the money that isn't used to pay the monthly bills. I then draw from this account to buy a new car, expensive cruise/vacation and the like. So I do want access (as opposed to a CD where there are severe penalty to withdraw). The amount in the MM account is currently a little over $100K. I recently checked and found that I am getting only 0.35% APR!!! This is rediculous. I also have a CapitalOne account and considered moving the money there but they pay only a little more and are not as accessible.

A friend has an account with the NC State Employee's Credit Union (I live in the RDU area)and gets more than 2% on his money, but I am not eligible for that (don't fit the eligibility requirements - I checked. Must be paid by the state or retired from state). But the NCSECU must be making money with that rate. By the way, my credit is impeccible (better than my spelling anyway) if that makes a difference.

I know that TSP gives good rates but doesn't meet the accessibility criterion. I made an early withdrawal (after 59.5 years of age) and really got socked at tax time since the withholding of 25% didn't cover the additional taxes necessitated by the 1099 filed.

Is there a good option for placing my money in a reasonable accessibile location at around 2% APR?
freeageless  
#2 Posted : Tuesday, July 21, 2009 4:06:45 AM(UTC)
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ChillinOut  
#3 Posted : Tuesday, July 21, 2009 5:03:33 AM(UTC)

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Some credit unions are open to just about everyone.

If you're looking for a federally insured place to invest your money, credit unions are a good option.
Hobson  
#4 Posted : Tuesday, July 21, 2009 6:04:16 AM(UTC)

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On-line savings accounts. You get set up to be able to transfer money back and forth between your bank checking account(s) and the on-line accounts. I'm familiar with the two below that are FDIC insured. They work fine, but you have to allow a few days for transfers to happen. Interest rates are not as good as they once were on these, but better than your 0.35%. I would love to have a savings account at one of my two banks, but they just don't make it worthwhile.

https://www.emigrantdirect.com/EmigrantDirectWeb/index.jsp

http://home.ingdirect.com/
Pat Johnstone  
#5 Posted : Tuesday, July 21, 2009 7:46:26 AM(UTC)
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Always tricky knowing where to invest your money...especially in this economy. I think the safe bet is with a fixed annuity
<a href="http://www.annuityrateshopper.com" target="_blank">fixed annuity</a>
The HalfBreed  
#6 Posted : Wednesday, July 22, 2009 12:27:29 PM(UTC)

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quote:
Originally posted by fairness6:
Check bankrate.com

http://bankcd.com/cdrates.html


Good choice.... Smile

Bankrate.com
RETIRED CSRS 12/19/2012 @ age 57 w/39 years.
Good Bye Tension...Hello Pension !
MaleMan  
#7 Posted : Thursday, July 23, 2009 5:32:01 PM(UTC)

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ChillinOut,
One point to keep in mind:

Not all credit unions are federally insured.

Just Because You're Paranoid - Doesn't Mean They Aren't Out To Get You.
freeageless  
#8 Posted : Thursday, July 23, 2009 6:40:19 PM(UTC)
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Neither are all banks.

Quote

"ChillinOut,

One point to keep in mind:

Not all credit unions are federally insured"
texarkandy  
#9 Posted : Thursday, July 23, 2009 8:33:32 PM(UTC)

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quote:
Originally posted by PatJohn:
Always tricky knowing where to invest your money...especially in this economy. I think the safe bet is with a http://www.annuityrateshopper.com/


Yeah, right!!! :lol

(you gettin paid to post that?)
ChillinOut  
#10 Posted : Thursday, July 23, 2009 9:12:23 PM(UTC)

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I checked the NCUA web site on this. Apparently, two percent of the credit unions are not insured.

--Didn't know this.
MaleMan  
#11 Posted : Friday, July 24, 2009 2:58:38 PM(UTC)

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ChillinOut,

Well, the interesting way I found this out, is our local credit union (for federal employees) voluntarily dropped the federal insurance coverage last year. Some type of state charted/private insurance now insures them.

It was voted on by the members to make this cost saving move, I knew most would vote yes as they always seem to follow whatever the board says to do. I don't feel conformable with their move, especially with these current economic times.

Just Because You're Paranoid - Doesn't Mean They Aren't Out To Get You.
ChillinOut  
#12 Posted : Friday, July 24, 2009 3:49:56 PM(UTC)

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If the little NCUA sign disappeared from the window of my credit union, I'd regard this as a huge red flag. I'd move my money immediately.
tesaje  
#13 Posted : Saturday, July 25, 2009 1:33:56 AM(UTC)

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quote:
Originally posted by ChillinOut:
If the little NCUA sign disappeared from the window of my credit union, I'd regard this as a huge red flag. I'd move my money immediately.


I very much agree. Mine has NCUA plus additional insurance up to $250 or $500k.
MaleMan  
#14 Posted : Saturday, July 25, 2009 2:09:37 PM(UTC)

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So correct ya'll are . . .

Yep, the members of this credit union must not watch the news or read the newspaper. The vote to drop the federal coverage came about the middle of last year, which was after things started to melt down quickly.

As soon as it was sent to the membership for vote, I just knew it would pass cause the board "suggested" a yes vote. However, I really thought it would be a kinda close vote. I think it was something like 89% voted yes! I don't understand these people.

Prior to the change I did have a monthly-automated savings being deposited there for dozens of years. I did stop that the same month of the vote. I have since reduced my balance, but you guys are right, I need to get it closer to zero. Guess I will at least start using that account anytime funds are needed for various expenses to dwindle it down a bit more.

Just Because You're Paranoid - Doesn't Mean They Aren't Out To Get You.
MaleMan  
#15 Posted : Saturday, July 25, 2009 4:03:12 PM(UTC)

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I just stumbled across this data, so for those of you that may think failing banks are no longer an issue:

Regulators closed seven banks on Friday July 24, 2009 - bringing the total number of failed U.S. banks and savings and loan associations during 2009 to 64.

Four of the failed banks were included in a recent list of 89 undercapitalized banks and thrifts. Twenty-two of the undercapitalized institutions listed on May 28, 2009 have failed so far.

The New York State Banking Department took over Waterford Village Bank of Clarence, N.Y. and appointed the Federal Deposit Insurance Corp. receiver. The They sold all of the failed bank's deposits and branches to Evans Bank of Angola, N.Y., a subsidiary of Evans Bancorp.

The Georgia Department of Banking and Finance then closed the six banks held by Security Bank Corp of Macon, Ga. The FDIC was appointed receiver and sold the branches of all six failed banks to State Bank and Trust Co. of Pinehurst, Ga.

Georgia continues to lead all states with 22 banks or thrift failures during 2008 and 2009, followed by California and Illinois with 13 each, and then Florida with five and Nevada with four.
Just Because You're Paranoid - Doesn't Mean They Aren't Out To Get You.
freeageless  
#16 Posted : Saturday, July 25, 2009 5:29:16 PM(UTC)
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I don't think it is an issue if the banks are FDIC insured. The FDIC still guarantees your deposits, CD's etc. up to the maximum limits.

"I just stumbled across this data, so for those of you that may think failing banks are no longer an issue"
ChillinOut  
#17 Posted : Saturday, July 25, 2009 8:24:07 PM(UTC)

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The small community banks have been getting a lot of good press lately. Apparently, most of these banks have always had very conservative business practices and remain very sound.

I like the small town feel of a these little banks. Real people, who are competent and cheerful, answer questions.

A C.D. with one of these banks also seems like a good investment option.
richdor  
#18 Posted : Wednesday, August 5, 2009 11:19:07 PM(UTC)

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Lee, I just did an in service with drawal of my TSP. Went to BB&T bank and had them do a trustee to trustee transfer of funds, so I could still defer tax on this money. Opened up a traditional IRA , 25 month term CD at 2.12%. No fees involved and no penalties as I am over 59 and1/2. BTW, I live in NC, so BB&T's are everywhere in the state. You can have the bank take out the tax for you or you can do at tax time. I will retire soon and this was done to keep a chunk of cash on hand for expenses and my daughter's tuition, if needed. I left majority of my money in TSP to grow. Plan not to touch that for several more years. So far, I have been happy with my decision.
mallen  
#19 Posted : Monday, August 10, 2009 2:56:22 PM(UTC)

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quote:
Originally posted by fairness6:
Neither are all banks.

Quote

"ChillinOut,

One point to keep in mind:

Not all credit unions are federally insured"


I have to say,a few years ago,I would not have thought that much about it. Certainly I should have,but I really didn't. Now Im certainly happy to have that protection. My brother was a WAMU customer,and he could conceivably been in alot of trouble. I can just imagine another bank buying up wamus good assets and coming up with some accounting trick to strip out all the "good assets" and leave their depositors holding the bag if it were possible.
mallen  
#20 Posted : Monday, August 10, 2009 2:58:23 PM(UTC)

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quote:
Originally posted by MaleMan:
_
So correct ya'll are . . .

Yep, the members of this credit union must not watch the news or read the newspaper. The vote to drop the federal coverage came about the middle of last year, which was after things started to melt down quickly.

As soon as it was sent to the membership for vote, I just knew it would pass cause the board "suggested" a yes vote. However, I really thought it would be a kinda close vote. I think it was something like 89% voted yes! I don't understand these people.

Prior to the change I did have a monthly-automated savings being deposited there for dozens of years. I did stop that the same month of the vote. I have since reduced my balance, but you guys are right, I need to get it closer to zero. Guess I will at least start using that account anytime funds are needed for various expenses to dwindle it down a bit more.

_



89%? Sounds like Soviet era communist elections,of the elections in Iraq before the war.
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