Comments on: “My bank earns 0.5% interest” http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest/ Personal finance blog for college students, recent graduates and everyone else -- including entrepreneurship -- for getting rich. Featured in the Wall Street Journal and New York Times. Mon, 15 Mar 2010 13:53:17 -0700 http://wordpress.org/?v=abc hourly 1 By: Jill Murray http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest/comment-page-1/#comment-2829 Jill Murray Wed, 30 Aug 2006 14:29:42 +0000 http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest#comment-2829 I have to jump in here and vigorously throw my weight behind this principle of starting young above all. I started VERY young, saving money from my allowance, lemonade stands, babysitting and paper routes. Obviously, I didn't have a lot of money back then but interest rates weren't bad. In my mid 20s, I made some calculated high-risk career decisions that required me to temporarily reduce my income by 50%. What allowed me to do this and survive? My 7-14 year old self bailed out my 28 year old self with those old "insignificant" investments, that's what. (I rolled them over into retirement savings to claim the tax benefits.) Now I really must get off my lazy butt and take Ramit's advice here about interest rates on mid-term investments so that my 30s don't go down the toilet. I have to jump in here and vigorously throw my weight behind this principle of starting young above all.

I started VERY young, saving money from my allowance, lemonade stands, babysitting and paper routes. Obviously, I didn’t have a lot of money back then but interest rates weren’t bad.

In my mid 20s, I made some calculated high-risk career decisions that required me to temporarily reduce my income by 50%.

What allowed me to do this and survive? My 7-14 year old self bailed out my 28 year old self with those old “insignificant” investments, that’s what. (I rolled them over into retirement savings to claim the tax benefits.)

Now I really must get off my lazy butt and take Ramit’s advice here about interest rates on mid-term investments so that my 30s don’t go down the toilet.

]]> By: Carlin http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest/comment-page-1/#comment-2828 Carlin Wed, 30 Aug 2006 01:54:02 +0000 http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest#comment-2828 Starting young maximizes the power of compounding. I end up saving like 27% of my gross income between my 401(k) and regular savings account. I'm 24, have no kids, no real obligations, etc, so it's easy now to find the money. And I spend too much on dining out, so I could save more if I wasn't afraid of my cooking (is it done? screw it). I'm not bragging, just saying starting young isn't hard. Banking my raises also gets me used to the same amount of money, so I'm not like "Holy shit, a raise, what now...NEW CAR!" It's really easy when you set up automatic transfers (bank that raise). <b>You just have to start.</b> Starting young maximizes the power of compounding. I end up saving like 27% of my gross income between my 401(k) and regular savings account. I’m 24, have no kids, no real obligations, etc, so it’s easy now to find the money. And I spend too much on dining out, so I could save more if I wasn’t afraid of my cooking (is it done? screw it). I’m not bragging, just saying starting young isn’t hard. Banking my raises also gets me used to the same amount of money, so I’m not like “Holy shit, a raise, what now…NEW CAR!”

It’s really easy when you set up automatic transfers (bank that raise). You just have to start.

]]> By: Jennifer http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest/comment-page-1/#comment-2827 Jennifer Tue, 29 Aug 2006 21:28:46 +0000 http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest#comment-2827 Ramit, you must be very short on time these days. I expected you to really lay into some of these big banks. A few months ago a saw a citi billboard with these words "Don't sell out for a couple of bucks" and I wondered how many paintballs you'd figure that thing was worth. Ramit, you must be very short on time these days. I expected you to really lay into some of these big banks. A few months ago a saw a citi billboard with these words “Don’t sell out for a couple of bucks” and I wondered how many paintballs you’d figure that thing was worth.

]]> By: Idea Senator http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest/comment-page-1/#comment-2826 Idea Senator Tue, 29 Aug 2006 19:01:57 +0000 http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest#comment-2826 I like your idea of starting young to save money, but don't you think the potential to save money vs income earned is higher in the thirties group age onwards. I realise of course there are exceptions to the rule, but what advice would you give to those who may have not saved money earlier but started to do so in the thirties and try to catch up on the "loss". My question here is what percentage is the loss? I like your idea of starting young to save money, but don’t you think the potential to save money vs income earned is higher in the thirties group age onwards. I realise of course there are exceptions to the rule, but what advice would you give to those who may have not saved money earlier but started to do so in the thirties and try to catch up on the “loss”. My question here is what percentage is the loss?

]]> By: Jonathan http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest/comment-page-1/#comment-2825 Jonathan Tue, 29 Aug 2006 18:51:19 +0000 http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest#comment-2825 Yep, same program. I use my debit card instead of carrying cash anyway, so I wouldn't mind them rounding it up and matching some of it. Than again, this may be more of a hassle than it's really worth. I could just take the extra money they take from me and invest it better myself. Duh. Yep, same program. I use my debit card instead of carrying cash anyway, so I wouldn’t mind them rounding it up and matching some of it.

Than again, this may be more of a hassle than it’s really worth. I could just take the extra money they take from me and invest it better myself. Duh.

]]> By: Spender http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest/comment-page-1/#comment-2824 Spender Tue, 29 Aug 2006 18:32:13 +0000 http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest#comment-2824 I have my finances set up the same as you. Wells Fargo for checking/short-term savings, ING for mid-term savings, and 401k/Roth IRA/few mutual funds for long-term/retirement. Wells Fargo literally pays peanuts for interest. Think I get about .47% on one of my savings accounts. It is partially because I usually have I have my finances set up the same as you. Wells Fargo for checking/short-term savings, ING for mid-term savings, and 401k/Roth IRA/few mutual funds for long-term/retirement. Wells Fargo literally pays peanuts for interest. Think I get about .47% on one of my savings accounts. It is partially because I usually have <$1k in it, but even at higher balances, the interest never compares to other banks. Of the brick and mortar banks, I'm kind of surprised at Citibank. They've had some nice interest rates on their CD and their eSavings accounts. They seem to "get it" while others still seem to hinge so much on "free checking, oooo... free online bill pay, oooo". As more people realize almost ALL banks offer those, they'll start finding the ones who actually offer valuable incentives, like high interest rates or BofA's savings plan. I have my finances set up the same as you. Wells Fargo for checking/short-term savings, ING for mid-term savings, and 401k/Roth IRA/few mutual funds for long-term/retirement.

Wells Fargo literally pays peanuts for interest. Think I get about .47% on one of my savings accounts. It is partially because I usually have I have my finances set up the same as you. Wells Fargo for checking/short-term savings, ING for mid-term savings, and 401k/Roth IRA/few mutual funds for long-term/retirement.

Wells Fargo literally pays peanuts for interest. Think I get about .47% on one of my savings accounts. It is partially because I usually have <$1k in it, but even at higher balances, the interest never compares to other banks.

Of the brick and mortar banks, I’m kind of surprised at Citibank. They’ve had some nice interest rates on their CD and their eSavings accounts. They seem to “get it” while others still seem to hinge so much on “free checking, oooo… free online bill pay, oooo”. As more people realize almost ALL banks offer those, they’ll start finding the ones who actually offer valuable incentives, like high interest rates or BofA’s savings plan.

]]> By: Ramit Sethi http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest/comment-page-1/#comment-2823 Ramit Sethi Tue, 29 Aug 2006 17:32:44 +0000 http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest#comment-2823 Are you talking about <a href="http://www.iwillteachyoutoberich.com/archives/2005/10/a_great_idea_fr.html" rel="nofollow">this program</a>? Are you talking about this program?

]]> By: Jonathan http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest/comment-page-1/#comment-2822 Jonathan Tue, 29 Aug 2006 17:27:20 +0000 http://www.iwillteachyoutoberich.com/blog/my-bank-earns-05-interest#comment-2822 Bank of America has a cool deal where they'll match everything you put in your savings account, up to $250. So I'm thinking of opening one and putting a little money in just to get that. Otherwise an online bank with 5% would be a better savings option. Bank of America has a cool deal where they’ll match everything you put in your savings account, up to $250. So I’m thinking of opening one and putting a little money in just to get that.

Otherwise an online bank with 5% would be a better savings option.

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