RawCode

Yeah read the title. Just went up today at midnight. Good stuff for sure.

Filed by RawCode at 1:47 am under Emergency Fund, Investing
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According to this post on Arstechnica, it takes 13 months for a I-Bond to to outyield an account at ING Direct. That includes fees, so it is not too shabby if you can live without that money for a year minimum.

Filed by RawCode at 1:18 am under Investing
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After getting on with ING Direct to keep money for emergencies, I have been trying to find other places to keep cash that will still be accessable when needed. Not accessable to the point of a savings account at ING, but not stocks either.

I have been looking at setting up a CD ladder. That way I would have some amount of money maturing every year for the next five years while taking advantage of better rates. At ING there is a early withdrawl penalty of three months interest for one year cds and six months interest for longer term cds. But you have access to your money when you need it after waiting for it to be transfered. Good way to keep a large majority of an emergency fund somewhat accessable while earning more interest than just a savings account.

I have also been looking at I-bonds at TreasuryDirect. This is a longer term investment as once you invest, you cannot touch it for twelve months. If you withdraw before five years, you are penalized three months worth of interest. The rate is adjusted every six months according to inflation, currently it is a 4.8% which is better than 5 year cd’s. A pretty safe, medium term investment. Good for saving up for a new car or a down payment on a new house.

Both are good safe investments, but one does provide more access to your money when you need it.

Filed by RawCode at 2:50 am under Emergency Fund, Investing
3 Comments