A regular reader sent me a question the other day that I think is important for me to share. She gave me permission to use her letter and share it with you.
Hi Samantha. I’ll be saving some of my tax return this year. Where should I put my money to get the best return? Open an ING account? Some other savings account where I can earn interest and have access in case of emergency? Thanks!
Here is my answer:
Hi! Thanks for asking me about this. It’s an excellent question.
I did a little research and found that the online savings accounts aren’t doing well in terms of interest rates. They are very low now, less than 1% so you would not get a good return.
Another option is opening a Lending Club account. People borrow money from you and pay it back with interest which is usually about 9%. It is a much better return then putting all your money into savings.
To feel more comfortable and have immediate access to some of your funds you could put part in an ING account and part in a lending club account.
Lending club withdrawals take about four days through wire transfer into your bank. The minimum deposit is $25 on an individual account.
Here is the link: http://lendingclub.com/
What do you think? How will you spend your tax refund? Have you ever thought about investing it?
Submit Your Question –>> samantha @ richsinglemomma.com
