Friday, May 22, 2009

Feeling Flush

I'm not sure why, but I've built up quite a cushion in my Chase savings account-- just over $12,000 as I'm writing this. This is despite having made an extra mortgage payment of $2,000 just recently, and some transfers to other accounts. I use this Chase account to receive my direct deposit pay, and transfer money into my checking account to pay bills. I wondered if I'd made a mistake and forgotten to pay a bill, but apparently I'm all caught up!
The problem is that this cash is barely earning any interest. I think it's time to start shopping for some mutual funds again, and also transfer some money to my other savings account at FNBO, which earns more interest. I suppose I could also make another additional principal payment on my mortgage. In any case, not being able to decide what to do with over $10,000 is a nice problem to have!

15 comments:

movingeast said...

The chase accts don't see to be very generous with their interest. It's annoying that my WaMu online savings acct now pays chase-level interest as well. Just about time to leave that bank...

I personally have accts at SchwabBank and HSBCDirect.. they seem about the highest readily accessible (emigrantdirect is also up there).

Alternatively... with 10k you could look at buying govt bonds via treasuriesdirect.com?

Melissa said...

I have been using FNBO for about two years now and absolutely love it. The rates aren't as good as they used to be, but they'll come back. I also bank with the brick and mortar FNB and they are always competitive. I couldn't imagine that their online affiliate would be any different.

Anonymous said...

Lets see...you've paid all your bills, maxed out your retirement contributiosn, made extra mortgage payments and still have $10K left over?

Have a little fun! Take $4K and give a little more to charity, take a vacation, buy yourself that pair of shoes you loved but thought were ridiculously overpriced, get a house cleaning service for the year or a massage once a month for the next 6 months. You're responsible 99% of the time. And what is money for (after the basics are covered) if it's not to enjoy it?

Anonymous said...

High-yield checking?

Anonymous said...

Ally Bank is paying 2.25% interest (formerly GMAC--yes, they need another govt. cash infusion, but savings is FDIC insured up to 100K).

Karen said...

I would put extra on the mortgage. When I put extra on mine, it always makes me feel happy : )

Gord said...

I'm with Karen. It's not glamourous but nothing will yield more than paying down the mortgage; not even close.

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frugal zeitgeist said...

If your job is tip-top secure, this is a good time to buy mutual funds. On the whole, however, I too recommends paying down the mortgage.

Clyde said...

Dear Madame X,

I have a challenge for you 

I challenge you to give it away. All $10,000 generously and creatively! Does that create a sinking feeling in your stomach? It does for me and it’s not my money! But I know that we reap what we sow.

I’ve heard of non-religious business leaders who give regularly, knowing that their businesses do better. Giving promotes a good attitude.

It feels great to give to those who come in contact with you. Replace someone’s broken glasses, pay for a kid's summer camp, or donate to your local library or charity. Give even to those who are far away, like orphans in India.

Giving is an important area that goes largely ignored in personal finance blogs. I know you can think of creative ways to give and report on the results. I’d look forward to reading that material. It’s up to you, yeah, you. Shine on!

Yours truly,

Clyde

mapgirl said...

I think Clyde doesn't read your blog enough. If I'm not mistaken you're one of the PF bloggers that donates your blog proceeds to charity, is that right?

bugbear said...

I dislike anyone "challenging" some one else to give away his or her money. If someone wants to donate money to a cause, that's their own decision.

And you need to have sufficient standing with a person to issue a challenge to them in the first place. You can't do it as a complete or relative stranger. It's just rude and presumptuous.

Clyde said...

Thanks for your input. Those are interesting views on giving, and asking people to give. I always love finding out more about people. The topic used to be not so positive for me, so I might know a little bit of those feelings. I definitely agree that it is our personal freedom to determine the allocation of our own resources. Since I know Madame X to be generous by her ad revenue giving, I imagined some stories about how she gives coming from this idea. It's her freedom to choose though.

I really enjoy reading this blog and check it frequently. Madame X has actually helped to transform my personal finance life rather dramatically in fact. By finding and reading her blog, I found mynetworthiq.com, and through that, mint.com, meanwhile reading up on tons of different perspectives and tips. I have a regular routine in tracking and allocating my finances now, and it is largely due to Madame X. I could go on, but I think this is a great testimony to her work. No other financial advisor through written word has impacted my life so much. Thanks!

ReasonswhyIdumpedyou@gmail.com said...

You might want to use some of it for peer-to-peer lending, like Lending Club. It's averaging to be 9% interest.

Crystal said...

Our Chase Checking account always has $1000 in padding and ING Direct holds all our cash needs (main checking, emergency fund, property tax account, vacation account, etc). Even with the dismally low interest rates, we've been happy ING customers for more than 6 years...even their checking account pays interest!

Our Chase Checking Account pays nothing, but our ING Direct Checking pays 0.25% (1.5% if you have more than $50,000 in checking). Chase Savings is paying 0.01%, but ING Direct Savings is paying 1.3%.

If you have extra cash after everything else, I agree with Gord...put it towards your mortgage and consider it money well spent. :)