I need advice on where to put some money

cantdrv55 · 10-06-2008, 09:17 PM

Seriously.

I have to stash away a bit of cash (a large amount for me but probably chicken feed for you fellas). Anyway, WaMu is offering 4% APY on an online savings account so I'm considering it, but is WaMu safe? I'd be well protected by the FDIC as it's nowhere near the limit. I don't want to tie up the cash in a CD besides the rates are so low now anyway. If WaMu is risky, can you think of another savings vehicle that is safe, liquid and still have a decent rate?

Augustus · 10-06-2008, 09:41 PM

Quote:

Originally Posted by cantdrv55

Seriously.

I have to stash away a bit of cash (a large amount for me but probably chicken feed for you fellas). Anyway, WaMu is offering 4% APY on an online savings account so I'm considering it, but is WaMu safe? I'd be well protected by the FDIC as it's nowhere near the limit. I don't want to tie up the cash in a CD besides the rates are so low now anyway. If WaMu is risky, can you think of another savings vehicle that is safe, liquid and still have a decent rate?

Hello cantdrv55, You will get a higher rate at WAMU if you go into the branch. I got a CD for 4.98% there. The interest rates vary depending on amount and length of time. WAMU is not risky, you're insured for up to $100,000.00 Going to be $250,000.00 some time soon.

Be careful if you're depositing over $10k in cash. You might be investigated.

Regards, Augie

cantdrv55 · 10-06-2008, 09:53 PM

Good point about the amount, Augie. I didn't even think that it may raise a red flag. Thanks!

SteveinTO · 10-06-2008, 10:15 PM

There's a reason WaMu (or whatever it's called today) is paying 5%. Well capitalized banks are paying around 3%.

Prime rate Borrowers are borrowing at 5%, so I guess they'll make it up on volume.

I suppose FDIC insurance is better than AIG, but you should think twice about any investment that has even a remote possibility of having to utilizing their insurance.

competentone · 10-06-2008, 10:16 PM

Quote:

Originally Posted by cantdrv55

Seriously.

I have to stash away a bit of cash ... can you think of another savings vehicle that is safe, liquid and still have a decent rate?

By "liquid" do you mean you will likely need to access this cash within the next few years?

If not, and you don't already have any insurance against a monetary collapse, I'd suggest precious metals.

With the trillions of U.S. dollars held as reserve currency by China, Japan and a few Middle Eastern countries -- and with the Federal Reserve and Treasury doing everything in their power to devalue the dollar (and provide "relief" through inflation on the overburden of debt in our economy) -- the risks of a monetary collapse (triggered by the foreign holders of dollars "dumping" them) is unbelievably high right now.

Precious metals are one of your best defenses against such a collapse.

Got gold?

cantdrv55 · 10-06-2008, 10:33 PM

I want to have access to the cash immediately when I need it so a long term CD is out. How fast can I sell gold if I need cash? I ain't going down to the corner pawn shop.

mattdavis11 · 10-07-2008, 04:51 AM

exchange the dollars for a foriegn currency and bury it in the yard. I expect the peso to be worth more than a dollar here pretty shortly, so you ought to have a pretty good yeild on what ever you pick when you turn it back into dollars.

Halm · 10-07-2008, 05:06 AM

Quote:

Originally Posted by mattdavis11

exchange the dollars for a foriegn currency and bury it in the yard. I expect the peso to be worth more than a dollar here pretty shortly, so you ought to have a pretty good yeild on what ever you pick when you turn it back into dollars.

Ok, I know nothing about this, so help me out. With the dollar hitting a 13 month high against the Euro, why would you say this?

competentone · 10-07-2008, 05:29 AM

Quote:

Originally Posted by Halm

Ok, I know nothing about this, so help me out. With the dollar hitting a 13 month high against the Euro, why would you say this?

The dollar is not gaining strength; the Euro is just weakening.

Personally, I see no practical value exchanging one government fiat currency for another -- except for short term trades.

"Burying" any fiat currency is a certain way to guarantee losses. You cannot show me any fiat currency that has not lost significant value (purchasing power) over time. The whole idea behind fiat currencies is that they allow governments to devalue them indefinitely. They are not any long term store of wealth.

mattdavis11 · 10-07-2008, 05:46 AM

I don't have any basis for saying that. People are running around with their hair on fire, so maybe in some way I can join in too.

Gogar · 10-07-2008, 06:02 AM

Buy some gold. Chains. Big, thick ones.

masraum · 10-07-2008, 06:09 AM

Buy some of these