Posted: 1/9/2008 5:29:22 PM EDT
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I am new to this game, so go easy on me. I am looking to invest cash into diffferent investments. My wife and I have a pension plan thru work and we both invest in work 401k to the max. We are not eligable for Roth 401k"s or traditional IRA'a. I am going to invest in a few CD's, but the main question I have at this time if about Money Market accounts. I would like to have some cash available at all times for working capital for my farm and the standard 6 months to live on if jobs go away. The local banks pay about 0.50 for money markets with a service fee, but I see a lot on the net with banks such as Ing and Discover Bank, to name a couple that offer from 3.5 and up. 1. Why such a great difference between rates? 2. Are the institutione reputiable? 3. How easy are they to do business with, ease of transfer and such? I know these are fairly easy questions, but for a beginner, well  ... fullclipedit cause I can't spell... |
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1. Why such a great difference between rates? Your brick and mortar bank has to pay for the real estate and other costs associated w/ being a tangible product. Many of these online banks require you to do all of your banking online and don't offer services at retail locations, i.e. HSBC direct (my recommendation). 2. Are the institutione reputiable? Yes. 3. How easy are they to do business with, ease of transfer and such? Very easy. I use HSBC direct and I have no complaints with it. |