***High Yield Savings Accounts *** KNOW Your Options!
Friday, February 22, 2008

Posted in Financial Stewardship

One of Dave Ramsey's big tips is to start an EMERGENCY fund Right away once you have paid your necessities and BEFORE you pay your debts.  You MUST have at least 500.00 to start your emergency fund if you make below 20k, and anything above a starting emergency fund of 1000.00. 

Once you have funded your basic emergency fund, you then follow through with His debt snowball plan.  Once your debt snowball plan is put into action and your paying your debts, you will fully fund your basic emergency savings into a 3-6 month emergency fund.

Why would you want to save that much you say?  Well, what happens if you find your husband has been laid off from work and your a stay at home mom with children to provide for?  How bout if something comes up with housing issues, or home repairs or what if your child or husband were to be sick and needed medical attention and tests that weren't covered?  Why, you would already have money set aside to cover and that Emergency Fund is a whole lot better and much relief when you have it, then when you don't know where the money is going to come from.  You'd be able to spend more time dealing with whats important, than worrying about money issues.

So, with that in mind, the next tip is, why bother leaving your 3-6 month emergency savings in your checking account or even your savings where there is low yield with interest?  Why not find a high yield savings account or money market account where you can get to your money?  Remembering you want that money to be LIQUID (meaning accessible in case of emergencies that you can take out without penalty) not stored away in a swiss bank account somewhere that you can't get to it in case of a real emergency.

So when most savings account only give you 2percent at most, you could find one that will give you 4.28 or more percent in interest making YOU money. 

E-MoneyCentral

Emoneycentral has the updated list of High Yielding savings accounts and much more to watch your money work for you instead of you work for it.

So far the following Companies seem to be quite good:

ING

Emigrantdirect.com ((highest, but takes a few days to get to your money))

CapitalOne

Check it out and work to be debt free! We are. If we can do it, you can too.  It takes time and patience, but having freedom is a blessing, learning how to use the money God has given you is even more of a blessing.  You will have the foundation to teach your children basic financial principals which will last a lifetime and may keep them out of debt just by watching how you deal with your own money skills.

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