Tuesday, October 23, 2007
I think it is important to analyze your finances periodically. I did this the other day. I realized that I had my "Condo Down Payment" sitting in a local bank. When I opened the account 2 years ago, I knew that the interest rate sucked. I just wanted my money at a different bank that earned higher interest than the one I was currently at, and still have my money close. I called every bank in this town and got the interest rates, and this was the highest rate for the amount of money I had. At .75% I felt I had hit the jackpot. In the process of creating this blog, I realized that this was not a good move financially. I needed to get the best interest for my money, especially when I was looking to put thousands of dollars in the account. I have, as of today, closed that account and when the deposit clears my checking account in the morning, I will transfer that $152 to an account that has a yield of 5.05%. It's a good bit better and it also means I will need to save less principle to reach my goal. Not much less, but less regardless.