I have an ingdirect savings account and the interest isnt really that much (4.5%). Plus won’t I get taxed for it at the end of the year. Should I just keep my money in a safe with me.
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4.5% is actually a pretty good rate. but look around cos theres more competition now with webbased savings accounts. I’ve heard the the commonweath ‘netback’ has a rate of 6%. Also i think ing (the one your with) does that too.
keeping your money with you could be a real risk. u know the saying ‘dont put all your eggs in one basket”. you never know what might happen tommoro, i understand u wont get taxed but it might be a safer option in the bank (depending on how much money you have i guess)
keep the money in the savings account as long as their is no fees that eating up the money you make in interest.the interest is free money and you only have to pay the tax if its over $100 in interest that you get in a year.hsbc has a higher rate and no fees thats who i have.
I have another way to answer your question.
Bank account to me is a “Parking Account”.
Parking means, you put in today and withdraw tommorow. Do you know why bank provide ATM machines? Because too much money in the bank is a liability to them, coz they need to pay you interest.
if you are serious in keeping your money and get some good return, you should create a “Force Saving Account”. Can deposit and can’t take out over a period of time. I called this “Magic Safe”. The safe only open when you retire. and this safe can give you all the principal that you have deposit plus the interest. The “magic safe” will not expose your hard earned money to market risk and your principal are protected. This “magic safe” will also take care of your family members, if you are no longer around or unable to work.
Cool huh?
Where to find this safe? Easy, call a qualified financial planner to help you and tell him you want a plan which gives you steady return and zero market risk, of coz the return must be higher than your current interest.
Good luck