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Update on installment savings

August 16th, 2009 at 07:50 am

A few months ago I posted that I opened an installment savings account. For those of you unfamiliar with this concept, it is basically a forced savings in which you agree to deposit a certain amount over a certain amount of time. For myself, I chose to open an account for $20,000 over 3 years. The interest rate is %5.5. That means I will deposit a total of $18,331 (509.20/month). This is great if you are in a building phase of your savings and if you have job security.

So anyway, it has turned out to be a great idea. I know it's psychological but by treating it as a bill complete with a coupon book, I find saving for that account non-negotiable. On the other hand, I currently use a high-yield checking acct for the rest of my savings, interest rate %5.25. I have to confess that I am not as strict with my budget some months due to that readily available cushion. So I am supposed to have around $1600 a month left to deposit into this savings but some months I am off by a couple of hundred. I'm embarassed by that.

5 Responses to “Update on installment savings”

  1. Ima saver Says:

    May I ask where are you getting such a great interest rate?

  2. asmom Says:

    Metro City Bank in Duluth has the installment savings and The Bank of Georgia in Fayetteville has the rewards checking.

  3. Jerry Says:

    Heck, I think that forced savings leads to smart savings, because you never miss the money. Out of sight, out of mind. It is like the other amounts that are taken out for taxes or insurance, they aren't there to worry about! Good luck with your savings...

  4. LuxLiving Says:

    Did you give up on us over here at the blogs?

  5. hero definition essay Says:

    Such an update is very significant, but to achieve this goal, one should not sacrifice one's time and excessive work.

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