With all the big dogs with their heads under water, where does that leave the little people? The you’s and the me’s? Realistically speaking ever since we were able to have bank accounts, the banks have been fucked. People of our age have not been able to experience the roaring aggression of the stock market due to fear of losing everything. Let’s face it, we’re probably not interested in investing and the few of us who are interested don’t do it and prefer to stick to safe things. I am one of those pussies I can admit. I’m here to encourage those of you with your traditional savings accounts to ditch them and opt for something that will bring your ass more cash. Besides bonds, there are also money markets and CD’s, liquid funds or (almost) as these are not done the old way anymore. Now you get a debit card (just in case).

In short the money market functions like a savings account, usually with a higher minimum and a cap on the amount of transactions monthly. But because there are so many limits on it, you get a higher percentage thus you are one penny closer to that Marc Jacob clutch. *Only if you can hold out. Some of these banks do charge a maintenance fee commonly referred to as a monthly service fee if the minimum is not met, or you do too many withdrawal transactions for the month. Ally and American Express bank have no minimum, no maintenance fees for 1.49% which is kind of low for right now so you should probably invest a small amount at this time.

I opened my money market with Ally formally GMAC because I already had CD’s with them.

CD’s operate a little differently as if you withdrawal, you close, if you close you pay a penalty! The interest rate is higher, a lot higher and some banks pay you interest directly into a bank of your choice, or send you checks in the mail that you have to cash every month. It can be a bit tedious but it’s worth it. A lot of banks have a $500 minimum deposit and the best term to do it for in my opinion is a year. A year gives you the opportunity to carefully plan out your finances so you don’t have to steal from your siblings piggy bank, but it doesn’t sacrifice the perk of having a high interest rate. GREAT.

I’ve had an account at ALLY bank for both cd’s (multiple) and my one little money market. I don’t use commercial banks because their minimums are TOO HIGH and they’re interest rates are TOO LOW. (banks I’ve banked at : Commerce, Washington Mutual, Chase and Bank of America don’t judge me I’m scared of commitment) These online banks are great if you don’t need the money or don’t plan on having an emergency(lol what?) but don’t expect your money to come overnight if you decide to withdraw. Understand that opening an account is like a promise to the bank to let them have your money for that time. If you break the promise, they have to find somewhere to pull that money from!

Happy investing!

xxo,

roni