How much interest are you being paid?

I've had five friends sign up for an ING Direct on-line savings account that is currently paying 4.50% interest!

That is WAY better than the 0.25% interest (yay – yawn) that my money was earning in a savings account!

I still have twenty open links available to sign up and receive $25 FREE from ING Direct – just for funding your account with at least $250!  The entire process takes less than 10 minutes.

You can obtain an active referral link HERENO MORE "FREE $25 LINKS LEFT" – BUT you can still get a great account that is paying 4.20% interest with a minimum balance of $1 by clicking the link at the top right of this page or by clicking HERE.

Read Joe's recent blog posts 

Do you live near Anderson, SC?  Sign up for the Financial Freedom Class at NewSpring Church – class begins on Wednesday, September 19 and costs only $20 per household – childcare provided!  You can sign up and pay on-line HERE

 

3 Comments

  1. Chad on September 17, 2007 at 7:19 am

    actually you can currently get 5.05% APY from HSBC Direct with no fees.

    i know somehow you are telling me that i am wrong for giving people this idea but here is what i do once a year. i get at least 1 or 2 Balance Transfer 0.00% offers per year on a few of my credit cards..most with no fee, a few with the 3% fee. i do a transfer(they will send the money to your checking account), then i put that money in my HSBC Direct Account.

    The 0.00% is usually for 12 months and so each month i pay the minimum payment until the 12 months is up then i pay the full balance and keep the interest that has been in my saving account all those 12 months. Worst case scenario is when you pay the 3% but even then you make a modest profit. nothing beats FREE money.



  2. jsangl on September 17, 2007 at 7:39 am

    Sangl Says …

    Chad,

    I don’t disagree with the math of this – it works if you make the payments on time and repay the money at the end of the promotional time period.

    The PROBLEM for most people is this – they have no margin. They have $0 in savings and are living paycheck-to-paycheck. As a result, they encounter an “emergency” like a car repair (shouldn’t be an emergency – we all know that cars break down) and BOOM – they use the cash on the credit card for the repair.

    Here’s where the big problem occurs – the twelve months expires and they are short of the full pay-off because they used the money to pay for “emergencies”. The interest is back-dated to day one and the credit card has gotten them another victim.

    There is a REASON that credit cards make this offer.

    By the way, the most recent statistic I have seen on this is that 78% percent of 90-days, 180-days, 360-days same-as-cash deals convert to payments.

    You are not wrong, it is just that the majority will try it, fail, and end up in a larger debt hole.

    Thanks for the comment!



  3. Chad on September 17, 2007 at 7:56 am

    Joe,
    i understand and i agree with you completely as to why they offer it. man i was in college and stupid.. didn’t even know how credit worked and didn’t understand the effect of bad credit. i know all to well now and instead of the credit cards making money off of me i now make money off of them.

    in any event, another thing that has worked for me, is that when people get out of debt and get their credit back on track and have a BUDGET is to do a few things(again i am not expert but to me it’s just common sense). Again this is for people that are back on track.

    #1. Get a few cash rewards credit cards. i have never seen any of these cards have a limit less than $1,000 and this is the lowest. once you have these pay for ALL your bills using these. when you have a cash back reward card that pays you 3%-5% on gas, groceries and drugstores and 1% of everything else, paying with CASH indeed gets to be expensive..kind of funny to see that ha! most of these do have yearly limits but thats why i said get a couple. if you pay all your bills using these cards you will need both during the span of a year. most have $300 a year limits but hey – $600 a year of FREE money for simply not paying in cash(or check) is a good deal right? Remember that since you are paying all your bills using these cards pay off the FULL balance every month..which you should be able to since you are used to either paying by cash or check anyway which leads me to the second point.

    #2. Pay your bills ONLINE. every bank now offers free online bill pay. If they don’t all credit cards offer a setup for paying your bills through your checking account online. Over the course of 12 months you are saving yourself money on stamps, checks, envelopes to put the checks in and the stamps on, time going to the post office and gas driving there. this may seem silly but it adds up. heck i dont even own checks, haven’t written a check in over 3 years and been the bank maybe once in that timespan.

    thanks for letting me comment!

    Chad



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