Everyone should have some savings in cash to meet short term expenses or available in case you lose your job suddenly. The best place to stash your savings is in a online savings account. I use INGdirect. They pay a good interest rate and you can monitor your account easily online. The interest rate is usually about 2% better than any bank savings account and not too far from a CD rate. After you get your account setup you then link your bank or credit union checking accounts to the INGdirect account. You can then easily transfer money back and forth effortlessly. It does take a few days for the transfer to happen but if you plan ahead it's no problem. The other reason to setup the link to your bank or credit union is to setup an automatic savings account. This way you can have $20, $50, $100 transferred every month to this savings account. I just paid off one car loan and got another. The new car loan was about $100 cheaper than the old. So I setup an automatic transfer of $100 every month so that I really save that money and don't blow it somewhere else. If you have read my other posts you know how much I like to setup automatic money items, especially when they increase savings.
Oh, by the way, the INGdirect Orange Savings account is FDIC insured.
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