I'll be 40 in a few years and have zero dollars saved. No retirement, no 401k...nothing. I did just inherit around $50k in an IRA rollover plan, so I suppose there's that...but that's all. I took some money out of the IRA to pay off all my credit card debt.

After all monies are in and loans to family paid off, I will probably end up with under $10k. We will be moving in the spring/summer, so I would like to save some of it back for those repairs that seem to crop up when you move. But, if I had two or three thousand dollars to save, what would you suggest I do with it? My local bank rates on CDs are 4.9% for 14 months. I can't get the savings/mm rates to come up online right now, so I don't know those, but imagine they would be less. I can't start a Roth IRA as I'm working VERY part time right now.

Any advice?

I would put it in a high yield online savings account where you can have easy access. hsbcdirect, emigrant direct, or ing direct are the three I have. e-trade bank, countrywide bank, and FNBO have higher rates.

such an account pays about what CDs pay yet gives you easy access.

good luck!

I would agree that access is important. With a CD , if you withdraw before it matures you get penaltized.

High yield money market/savings accounts, are the best for your situation. High Interest/No Minimums, and at the very latest a lag of 3-5 days to retrieve your money.

That way in case of an emergency you can pull that money out.

ING (personal favorite).
I would say that there is a good chance this will go quick given your situation, so you need it liquid.


Emotionally (not a shrink) I would say start with the self realization that unless you have another rich relative you will be working until you are 70. If that doesn't start you to save for retirement, nothing will.

saladdin

I plan to win a lottery at some point. Of course, I hear you have to buy tickets first. You're right, I will work until I die....and that HAS made a difference in my retirement thinking. Actually, the whole ordeal with my Dad dying has made me think about money differently.

Is it "normal" for non-online banks (Huntington National) to offer 1% APY??

1% is high.

You're kidding?! How do the online places offer such higher rates? Less overhead?

mostly low overhead and for some it is a chance to sell you other products.

hegemony, is there a reason you don't like the higher rate online banks? *Edited...I saw you say you were thinking of switching so disregard this question.

well I have most of our "cash" (excludes CDs and mutual funds) in emigrant direct. I am pretty sure I am going to move all but the minimum amount needed to maintain the 1.4% cashback from the emigrant credit card to OneUnited Bank, which is offering 5.3% APY.

I agree, but I would also say that in some situations, maybe this one, not having instant access to your money is more important. Every time I'm in Costco, and I walk by the TV section, that 52" flat screen TV just calls out my name

LOL, I've already got the TV. 36 months same as cash to boot.

The few thousand will start an emergency fund that is lacking. I would like to have 6 to 9 months worth of funds saved, if not a year. After that, I'll start asking about my next step.

Kayak, ING has been good to me.

I see your scores in your siggy, have you considered taking $500 and finding a secured card that puts your deposit into a CD?