Quote:
Originally Posted by RevSmoke
Don't think I'm referring to you. In college I did the same thing, as I live paycheck to paycheck. I'm speaking of the guys (and/or gals and/or couples) who brag about the $5-$10K refund check.
$5k at simple intrest in a savings account is a bit more than a cheeseburger. Put into a money market is even more. A CD (that allows you to add throughout the year) even more. And, put it in a mutual fund is even more.
Peace of the Lord be with you.
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We're talking more like 2k$ with our refund before education credits. Find me a CD with greater than 2% APY for a 6 month low yield and I'll applaud.
Fact remains Savings Account interest rates suck(even moreso for College Savings Accounts like what we both hold) and putting money in a CD after a year's worth of savings won't mature for another 6 months to however long. So the money comes far later and the interest again isn't going to be anything worth celebrating over.
I can fully appreciate not trusting 'the man' and keeping your money close to you, but doing it purely for the 'interest' is a null factor in my mind.
With the ease of online banking, money transfers and seeing that nice lump sum sitting in an account untouched, the ease of ability to spontaneously purchase something will create the possibility and probability of more negative impact on the average person's 'withholdings account' than the positives will ever gain.
