From what I've read, online only banks are safe as long as they are FDIC insured. It's just like how you use the app or website for your regular bank - just without that brick-and-mortar overhead. One thing to remember though: *personal* online security is still up to you. (aka maybe don't use your banking apps when you're on the free coffee shop WiFi.) The bank will take security measures on its end so you can use the app or website safely, but you still need to practice good online habits.
Thank you Lisa! I know some of the on-line banks, like Ally, have been around a while, I'm wondering if there is a way to check out their performance. I assume if they advertise FDIC insured that's a first step.
@mintjulep For what it's worth, I've heard such great things about Ally from lots of credible sources. I just opened an account with them and the experience has been excellent so far. They offer paper checks as an account feature -- which I couldn't find at any of the other online banks. (I have had to work with a lot of contractors, handymen and landscapers in the past year that still only take checks.)
I just opened an account with Empower and will be putting some money in there shortly. FDIC insured is something you can usually count on. I personally enjoy trying out new things and am usually one of the first to test these new things. There is a always some measure of risk involved but as long as the company is reputable and isn't promoting anything that I would deem to be sketchy, I will usually at least give them a shot. As mentioned above, it really just depends on you and weather you...
I definitely think it is worth it. I don't put all my eggs in one basket anyway, even when it comes to just a checking account, so why not get as much interest as is available. I'd love your input on the various online banks as you try them @Moore Income! You've listed some others that I've not been aware of. Thank you!
@Moore Income how do you strategize what money goes into what account, and how do you stay organized? I recently consolidated some of my cash and closed some extraneous accounts, mostly for simplicity's sake. How do you maximize your 6 checking accounts?
@Former Member Good question. I personally am just testing most of them to see howh they work and such and I usually just start with a set amount. I have moved money between a couple due to a better interest rate but I haven't really added much to the accounts besides the initial deposits. I am starting to add more to My Haven account since they have a 2% interest rate (up to 4% if you refer people) they also allow me to connect all my other accounts to manage my money in one place. So...
I would say to go with a mutual fund or to go to your county court house to see if there are any properties that have back taxes. One can make anywhere from 6-12% on the money they pay in back taxes on someone else's property! We have done this a few times, and it was good. But one always needs to check the property's condition, ability to sell, just in case you end up with the property. More often that not, if you do, it will be of much greater value than what you paid for the back taxes.
As far as savings accounts, you could keep going to the high interest savings accounts. The regular savings accounts are a good tool for kids to start learning the value of money, but for adults, the higher interest rate accounts are the way to go.
I talked to a local realtor friend of mine. I also spoke to an investor in the town I grew up in while I was visiting there. The thing one needs to remember on these is that you may not get your money back for up to two or three years. But, you still get the interest as well. If the person never pays the back taxes, you get the first right to buy the property, sometimes for the costs of the back taxes alone. It is an involved process...I don't remember if it was Robert Kyosaki (Rich Dad Poor...
I personally have been transferring my money to higher yield savings accounts without all the fees. There are so many new services out there that give you much higher interest than local banks. They are going to have to start competing or they are going to fall behind. The fact that they give so little interest and charge fees is not appealing to me at all. I had about $120 in my local savings account and I transferred it to my checking right before Jan. because I wasn't sure if my paycheck...
I liked my return on investment on the tax lien certificates, but there was way too much involvement for me at the time, and I didn't have the time. But, many of my friends ended up making a good chunk of change in it, Im thinking of going back to it again.
I live in NY - and unforuntately, from my quick research. this isnt possible. they only sell wholesale. Also you have to be a holding company. i think westchester county may allow for the public to buy. But it does seem like alotof involvment.
I have now considered putting my emergency fund in a online CD account for 2.90 APY. its money i shouldnt be touching and hopefully i dont- but if anything I do have credit card I can use. Ive been thinking about doing the 12 months or 24 months CD. nothing more then 2 year. Doing the calculations - if i put 10k in, thats can be $285 or $588 respectivetly. Not bad for a year or 2 years.
i think we have some thing like this in KS. I just don't no how to find the list here. I found out throw that the 1 bedroom house sold for $3000 back taxes. The person who brought it or paid the taxes has the house looking really nice now.
Hi Everyone, I am thinking about closing my traditional bank account like TD and Chase. I already have 1 online high yield interest bearing savings account and im thinking about going all in. I no longer want to see an interest of .01 cent every year? or have to keep a minimum in order to avoud fees. What do you guys think?
I'm nervous about the solidity of some online-only banks, but there is the carrot of fabulous interest rates. I noticed the app discussed recently at Penny Hoarder, the Empower app, is FDIC insured up to $250,000. I'm interested in getting as much interest as possible on reserve cash, as anyone, but am I being overcautious here? How much confidence should we have in these online-only banks?
Without question, the biggest budget buster than my wife and I uncovered in our Penny Hoarder journey was the ridiculous amount of credit card debt and the accumulation of interest being charged on the interest, month after month. Have you added up the total of minimum payments and the amount of interest alone from just one month? We were aghast at how many of today and tomorrow's dollars were going to pay for yesterday's expenses... hundreds and hundreds of dollars each month. We found a...
I personally use Ally for their higher interest rates. And I think when using online banks, you should diversify across them, like anything. For example, I might keep a maximum of 100k in my Ally account as a maximum (this is a convenient number because once I hit that number, there's generally some real estate syndication I can reinvest in and then get rid of that heavily inflated cash). And then I diversify it by having a Schwab bank account. I think they're quite good as well. I mean they...
I've paid an extra mortgage payment annually for several years but stopped doing so last year when we refinanced to get a lower interest rate. At my age the mortgage will likely outlive both my husband and myself so the goal now is make sure the survivor has the lowest mortgage payment possible.
This is great information that reinforces some things I knew! My wife and I recently refinanced our mortgage after only being in our new home 1 year! We dropped our rate by 1.25% and save about $200 a month. But I’m actually going to add that extra payment of $50 to begin with and increase it every year by $10.
I voted that I no longer have a mortgage, but we did refinance our then mortgage in 2013 when rates were much lower than the original. This made it possible to pay extra to the principle and we paid it in full December 2019.
Since we bought our home many years ago, we did a refi later for a lower % interest, our realtor stated if you are going to refi, be prepared for all the ancillary costs associated with it. Also, make the refi worthwhile, meaning dropping by at least 2%, otherwise it is not worth it.
Oh yes! My wife and I looked into giving it a try on the advice of my good friend and barber. We'd only been in our home about 2 years, so I wasn't sure we had enough equity to do it. Man was I wrong! Not only were we able to refi at 3% and save tons in interest and $200 on our mortgage payment, but we were also able to kill our PMI from the previous loan!!! Woooo Hoooo!!! We consider ourselves very lucky to get it done.
We've actually refinanced twice since buying in 2019. The second time was when the interest rates dropped dramatically thanks to COVID. Ironically, we actually ended up with a higher payment since we flipped from a 30 year to a 20 year lol.
@Stephanie C that is what I would have like to do in terms of a 20 year mortgage. But I figure if we send in some extra towards the principal. We can at least pay it off a little quicker. Good for you guys!
The information I know now about mortgages wish I knew 5, 10, 15 years ago. My husband is on his 4th and last mortgage on our new place. Yes, he refinanced 4 times. Each time was for a lower rate. However he took out money 3 times. The last time he didn't for he finally knew better. Plus adding all the fees to the mortgage. We now owe more than the first mortgage he took out on our place. Just think we would also only have 9 years left of the mortgage instead back to 30 years. I will say our...
In the early 1990's I took an ad sent directly to me and my husband from a local bank that was not where our loan originated, I took the whole ad, envelope and all. It included a letter addressed to me and my husband by name, to the loan officer at our bank. His jaw dropped. He could see that his bank could loose our loan. He asked to take our mail to his loan officer meeting the next day. They would need to approve our refinancing our loan w/ the teaser loan. His fellow officers were wowed...
I refinanced in 2008 after receiving multiple ads in the mail from a company (I forgot the name). At first, I thought it was a scam, but I called and it was legit. My interest rate was lower, and my monthly payment decreased by $200. I was thankful because I bought my first home during an inflated housing market in 2006. My parents refinanced a few times, but I don’t understand why they currently still owe the same amount for which they bought their home.
Thanks to historically low interest rates, the number of people who refinanced their mortgages skyrocketed in recent years. By doing so, homeowners are saving many thousands of dollars over the course of a mortgage. But early indicators suggest these low interest rates won't last much longer. Have you been able to take advantage of the current low interest rates and refinance your mortgage? Or perhaps you were able to finally buy a new home and lock in a low rate for the long term? Let us...
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