So in deciding where to open my “fun fund,” originally Emigrant had been my favored institution, but recently, I read a post on Bank Deals that stated, Emigrant downgraded to 2 stars. No big deal right? They are FDIC insured. Ummm, not completely.
If I have a choice, I’m not going to put my money in a bank that might be insolvent, however unlikely that may be. Of course, I haven’t done a ton of research into Emigrant, but really, I’m not looking to do so. I just want an easy place to put my money to spend, and one that I don’t have to worry about. Even if it’s not completely true, there has to be some truth behind it. That being said, my current consideration list is:
- My current credit union’s savings account.
A fairly low savings rate, but it’s convenient and easily accessible. I can also get traveler’s checks for free.
- Paypal (thanks LAMoneyGuy).
Might be a good mix between a full fledged online bank and my local credit union. Transfer is much quicker than HSBC, that’s for sure. Plus no minimum, and I can use it to buy things online, although I’d still probably use my credit card. So that point is moot. And rates are very competetive…I was surprised actually. At 4.95%, that’s pretty impressive.
I’m going to be out playing a round of golf today (yes, I’m taking a half day from work…I am not play hookie). I haven’t hit a golf ball in over a year, but this will be for a school benefit, which is why I’m going. It should be very interesting. I won’t be posting anymore until later today if anything.
Flexo
July 13, 2006 at 10:30 am
PayPal’s money market fund is not FDIC insured and they have a history of freezing people’s accounts and making it very difficult to communicate with the company. I wouldn’t leave any significant amount of money there.
Kira
July 13, 2006 at 10:31 am
I have heard some bad things about Paypal customer service. As in, they freeze your account and take the money whenever they feel like it. And HSBC is still higher than that. Paypal is a real bank (they bought the bank x.com back in the day) but they sure don’t act like one.
LAMoneyGuy
July 13, 2006 at 1:19 pm
Hmm… interesting comments. I have about 3k there, and no problems so far. But I’m a sample size of 1. There is something weird about putting a large amount of money there. I know someone who put the proceeds of the sale of his home in Paypal, about $350k. Not a chance I would do that.
Single Ma
July 13, 2006 at 1:23 pm
How about use HSBC and request an ATM card. This will satisfy the sense of security, competitive rate, and quick accessibility if/when needed.