On Mar 29, 2:43 pm, "CB" <chadsm...[at]gmail.com> wrote:
- quote -

A Vanguard account, as far as I know, is *not* FDIC insured

As an *example* of the sort of account I mean, I went to bankrate.com,
listed the savings account by interest rates (specifying no minimum
amount) and looked for banks with large, familiar names (and high star
ratings: but I don't know how they compose those). A large familiar
bank is unlikely to go bust, and if it did, the FDIC would pay up to
$100k on an account that is FDIC-insured.

http://www.capitalone.com/directbank...3KWXmClF&ext=Y

which came from a list on:

http://www.bankrate.com/brm/rate/mmm...416&product=33

I also suggest you read 'Personal Finance for Dummies' which has been
recommended here. Don't take offence at the title, it is a good and
helpful book.

On Mar 29, 2:43 pm, "CB" <chadsm...[at]gmail.com> wrote:
- quote -

PS

5% would be 5% per annum. It depends on the account whether that
interest is paid once a month (ie about 0.4% per month) or less often.

"CB" <chadsmail[at]gmail.com> wrote in message
news:1175174495.061707.163650[at]p15g2000hsd.googlegroups.com...

- quote -

Vanguard money-market accounts are *not* insured.

However, one of their accounts (the Treasury Money Market Fund, VMPXX)
"invests solely in high-quality, short-term money market securities whose
interest and principal payments are backed by the full faith and credit of
the U.S. government" (quote from the Vanguard website). Frankly, I suspect
that if those securities to fail, FDIC insurance wouldn't be worth much
either :-) But you should make up your own mind about that.

The current interest rate on that fund is 4.85% per year, paid monthly based
on your daily balance.
That is, each month, they average what your balance was during that month
and pay you approximately 0.404% (4.85%/12) of that average.
Some of their other funds pay slightly more, but are slightly riskier
because they're not backed by full faith and credit. One advantage of VMPXX
is that its interest may be exempt from state income tax (though not from
federal tax).

I don't know how other companies' money-market accounts work -- I've been a
Vanguard customer for 10 years and have seen no need to look elsewhere. I'm
sure there are plenty of other people with similarly good experiences with
other companies; I just don't have any personal experience with them.

Daniel T. wrote on [Thu, 29 Mar 2007 09:12:46 -0500]:
- quote -

Countrywide Bank offers 5.4% in thir Savingslink account, FDIC insured

BreadWithSpam[at]fractious.net wrote on [Thu, 29 Mar 2007 12:47:22 -0500]:
- quote -

I am hoping he was making a joke

"PeterL" <po.ning[at]gmail.com> writes:
- quote -

They're FDIC insured. I'm pretty sure they're okay.

FWIW, ETrade has an associated bank (while transfers and such
are allowed between it and ETrade Securities accounts, it's a
separate entity). ETrade Banks's "Complete Savings" account
is currently paying 5.05% APY with no minimums. Also FDIC
insured. One links such an account to one's checking account
for electronic transfers (just like ING Direct or VirtualBank).


--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

On Mar 29, 7:12 am, "Daniel T." <danie...[at]earthlink.net> wrote:
- quote -


Somehow I don't think I want to put my money in a virtual bank.

In article <1175174495.061707.163650[at]p15g2000hsd.googlegroups.com> ,
"CB" <chadsmail[at]gmail.com> wrote:

- quote -

http://www.virtualbank.com/ is offering 4.6%APY on its money market fund
and it's FDIC insured.

On Mar 29, 5:00 am, darknes...[at]yahoo.com wrote:
- quote -

You could also look into a mutual fund account with an automatic
investment option. The firm I work for can open these with $50.00 and
$25.00 per month. As for FDIC, these type of investments are not FDIC
insured, but my personal opinion is that FDIC insurance is dinosaur
best left in the depression years. And I used to work for a bank, so
if you did make a claim, I have seen how very long it can take before
your ever get close to getting your money back. Some of my former
bank clients had accounts with banks that had dissolved DECADES ago
and still haven't seen cent one.

wow you guys are great. thanks for all the quick answers. ill check
out vanguard. that sounds exactly like what i want. are all money
market accounts like this? also is vanguard insured? i dont wanna lose
any money. you said 5% payed per month. is that 5% yearly payed in
monthly increments, or 5% per month?

thanks guys.

On Mar 28, 10:23 pm, "PeterL" <po.n...[at]gmail.com> wrote:
- quote -

I think the important thing to make sure, though, is that the deposit
is FDIC insured?

Since this is the OP's cash account, safety is a pretty key criterion.

On Mar 28, 12:14 pm, "CB" <chadsm...[at]gmail.com> wrote:
- quote -


Why is not your savings account not giving you interests?

There may be money market accounts that would get you close to that
interest rate. Check with your local credit unions or go to
bankrate.com.

"CB" <chadsmail[at]gmail.com> wrote in message
news:1175107576.996524.138660[at]p15g2000hsd.googlegroups.com...

- quote -

There are any number of financial companies that offer money-market accounts
that you can link to your bank account.

I am personally familiar with Vanguard, having been a customer of theirs for
more than 10 years, so I'll outline how their setup works. This is from
memory, so you should consult www.vanguard.com for definitive information.
I am quite sure that other companies such as Fidelity offer similar
services, but I don't know what they are.

For a minimum initial investment of $3,000, you can open a money-market
account. These accounts pay interest monthly, based on your average daily
balance, and are currently paying about 5%. If your balance falls below
$2,500, they charge $10/year for account maintenance. If it falls below
$500, they may close the account and send you a check.

Once you have the account, you can write checks on the account. There is no
charge to write checks (and even the checks are free), but each check must
be for $250 or more.

You can set things up so that you can transfer money between this account
and your bank account electronically in either direction. There is no
charge for the transfers, but they take two business days to happen, and
there is a $100 minimum per transfer. If you transfer money *to* Vanguard,
you can't withdraw it for 10 days, but it earns interest during that period.
Of course, you can still withdraw other money in your account during the
waiting period.

You can also arrange for your direct deposit to go directly into your
Vanguard account, and then transfer to your bank account as needed. You can
also cause transfers to happen on a regular schedule.

You can do just about anything you want with your account over the web. For
that matter, you can sign up for the account over the web (though you
probably have to print out some forms and mail them in so that they have a
paper signature). For more information, I suggest you check out
www.vanguard.com (or other financial company of your choice).

Try " ING DIRECT"
Cal


"CB" <chadsmail[at]gmail.com> wrote in message
news:1175107576.996524.138660[at]p15g2000hsd.googlegroups.com...
- quote -

WIthout going into too much detail or promoting specific companies,
many banks offer "sweep accounts" to accomplish your goal. At the
close of every business day, the remaining account balance is "swept"
into an interest bearing account. Many sweep accounts require high
minimum balances however and are geared more towards businesses.

Alternatively, many brokerage firms now offer money market accounts
from which you have check writing ability. I can't speak for every
brokerage Co., but some charge flat fees (check issuance, monthly
fees, etc) that will eat into interest earnings. My local bank, on the
other hand, charges no fees and checks are only half the costs of
those charged by my brokerage firm. Online brokers/banks often tend to
be slower than brick-and-mortar banks in regards to common processes
and therefore require more attention to budgeting. If you for some
reason needed your entire account liquidated, and in cash, in a hurry
this could only be accomplished at a physical institution.

You could start by asking your local banks and by searching the online
brokerage houses. Just remember, it doesn't do any good to pay $2 in
fees to make $1 in interest and then get slapped with a 1099-int to
boot.

"CB" <chadsmail[at]gmail.com> writes:

- quote -

Yes.

See ingdirect.com, or emigrantdirect.com, or hsbcdirect.com, etc.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

at work i have direct deposit and it goes right to my savings but i
would like to have it go into an account that gains interest. i know
CD's are at 5%ish right now and do they have any savings accounts like
this? that my check can be deposited to and then i can pull whatever
money i need for monthly bills out. or maybe if it could direct
deposit to the account and then that bank only keeps X amount of money
per month and deposits the rest to my checking? please suggest
something for me. how do you all do it? i want to gain interest and
have X amount of money out of reach every month.