[new2the3]

I currently have 6k in my savings account @ 3.75 APY. I plan on getting a temp job from January-June and save up another 15k. In June I will use the money to pay for a 135i when my lease is up.

Is the savings account @ 3.75 APY my best option for the short time period? I really do not know much about investments so if someone could suggest I do something else with the money that would be helpful.

A. stick with my savings @ 3.75 APY
B. Recommend an investment greater than 3.75 APY with little risk and I can cash out in June.

Thank you for the help.

[Rick]

Blackjack FTMFW!

[wj4]

Originally Posted by new2the3

I currently have 6k in my savings account @ 3.75 APY. I plan on getting a temp job from January-June and save up another 15k. In June I will use the money to pay for a 135i when my lease is up.

Is the savings account @ 3.75 APY my best option for the short time period? I really do not know much about investments so if someone could suggest I do something else with the money that would be helpful.

A. stick with my savings @ 3.75 APY
B. Recommend an investment greater than 3.75 APY with little risk and I can cash out in June.

Thank you for the help.

Remember that everything comes with consequences. With short term investments, you have a greater chance of losing or not making any profit than you do with coming out on top.

Keeping your money in the savings will be better in the long run, but would not yield great result in short term, but it's more safe.

I know it's not one of your options, but the best bet would probably be to buy out your 330i and keep it instead of going with the 135i. It's probably a more reliable car too since the HPFP hasn't been resolved yet.

[sinnet112]

Originally Posted by wj4

Remember that everything comes with consequences. With short term investments, you have a greater chance of losing or not making any profit than you do with coming out on top.

Keeping your money in the savings will be better in the long run, but would not yield great result in short term, but it's more safe.

I know it's not one of your options, but the best bet would probably be to buy out your 330i and keep it instead of going with the 135i. It's probably a more reliable car too since the HPFP hasn't been resolved yet.

+1

I don't know how savvy you are with investing, OP, but a lot of what's going on these days is technical trading and you should be on top of news/things that go on daily. For a more hassle free time, I'd recommend keeping it in the savings account. 3.75 isn't bad and it'll go up once the Fed raises rates not too long from now probably.

[jaiman]

Stay in the savings account.

[new2the3]

Thanks for the replies. the trusty old savings account will do. one last question. my bank offers an eight month cd at 4.25%. would that be a better option for the 6k i currently have sitting in savings?

once again thanks for the help

[oldaccount]

Originally Posted by new2the3

Thanks for the replies. the trusty old savings account will do. one last question. my bank offers an eight month cd at 4.25%. would that be a better option for the 6k i currently have sitting in savings?

once again thanks for the help

as long as you wont need that money for 8 months, I dont see why not.

[IrateSpeed6]

I just don't understand why more people don't use HSBC online savings... Right now I get 3.9% and have about a 2-day access to my money with no penalties...

When I first signed up 1+ years ago I was getting over 6%, with interest rates going up in the next year, I def. won't be going to any other institution - it almost beats CD's (in regards to APY and availability to your cash). Even Money magazine seems to be missing the idea... they never have HSBC listed in their top picks?!?

[wj4]

Originally Posted by IrateSpeed6

I just don't understand why more people don't use HSBC online savings... Right now I get 3.9% and have about a 2-day access to my money with no penalties...

When I first signed up 1+ years ago I was getting over 6%, with interest rates going up in the next year, I def. won't be going to any other institution - it almost beats CD's (in regards to APY and availability to your cash). Even Money magazine seems to be missing the idea... they never have HSBC listed in their top picks?!?

A lot of people do. HSBC, ING Direct, etc. I'm sure he has WaMu, the only brick and mortar bank that even has anything close to what online banks offer.

When I was doing my research on online savings, HSBC and ING were the top 2 picks.

[jaiman]

Originally Posted by new2the3

Thanks for the replies. the trusty old savings account will do. one last question. my bank offers an eight month cd at 4.25%. would that be a better option for the 6k i currently have sitting in savings?

once again thanks for the help

in terms of interest difference you are looking at $20 over the 8 months. If there is no way you will need the money, then sure.

[new2the3]

Originally Posted by IrateSpeed6

I just don't understand why more people don't use HSBC online savings... Right now I get 3.9% and have about a 2-day access to my money with no penalties...

When I first signed up 1+ years ago I was getting over 6%, with interest rates going up in the next year, I def. won't be going to any other institution - it almost beats CD's (in regards to APY and availability to your cash). Even Money magazine seems to be missing the idea... they never have HSBC listed in their top picks?!?

HSBC is at 3.5% APY right now.

I was with etrade at 3.3% but transfered to wamu to have it local and slightly higher interest. I do not need to touch the money so I am going to do a 4.25% APY CD with wamu ($6,100), then get my pay checks DD into my wamu savings when I start working.

[wj4]

Originally Posted by new2the3

HSBC is at 3.5% APY right now.

I was with etrade at 3.3% but transfered to wamu to have it local and slightly higher interest. I do not need to touch the money so I am going to do a 4.25% APY CD with wamu ($6,100), then get my pay checks DD into my wamu savings when I start working.

Sounds like a solid plan you have there! Good luck.

[oldaccount]

Not to thread jack, but in comparing HSBC and ING HYS accounts, im not seeing any substantial difference - the main one being APY's of 3.5 and 3.0 for HSBC and ING, respectively. Should I open an account with HSBC based on this fact alone, or is there something im missing?

[wj4]

Originally Posted by Suareezay

Not to thread jack, but in comparing HSBC and ING HYS accounts, im not seeing any substantial difference - the main one being APY's of 3.5 and 3.0 for HSBC and ING, respectively. Should I open an account with HSBC based on this fact alone, or is there something im missing?

It's really your call. IMO you can not lose with either. A lot of people like ING because of the super easy website to navigate and the superb customer service. HSBC is not that well known in the states, but they are huge overseas. I believe both offer no minimum balance and fee free so try out HSBC and if you don't like, go with ING. Some folks even have accounts with both. IMO anything less than 1.0 isn't worth while to jump ship or make one company more attractive than the other.

My step dad had both accounts for years and he's content with both companies. I was close to opening an account with HSBC, but I ended up going with WaMu.

[oldaccount]

Originally Posted by wj4

It's really your call. IMO you can not lose with either. A lot of people like ING because of the super easy website to navigate and the superb customer service. HSBC is not that well known in the states, but they are huge overseas. I believe both offer no minimum balance and fee free so try out HSBC and if you don't like, go with ING. Some folks even have accounts with both. IMO anything less than 1.0 isn't worth while to jump ship or make one company more attractive than the other.

My step dad had both accounts for years and he's content with both companies. I was close to opening an account with HSBC, but I ended up going with WaMu.

Thanks for the info. Ill probably go with ING; it is an easier site to navigate.

[ukthunderace]

Buy a car that is a lot cheaper and keep saving til you can buy it for cash and still have 6months - 1 year pay left over.

[new2the3]

Originally Posted by ukthunderace

Buy a car that is a lot cheaper and keep saving til you can buy it for cash and still have 6months - 1 year pay left over.

I am paying the whole car in cash

[its ray den]

unless you get really lucky in the stock market, you're not buying any BMW in cash by next june other than the car you're leasing now.

[ukthunderace]

Originally Posted by new2the3

I am paying the whole car in cash

Which is good, but make sure you still have 6 months to a year's pay saved on top of that. Saving up for something is great...it takes a lot of discipline and is the cure for what is ailing America right now (I must have it now! Put it on my credit card!).
In the end though, a car is no investment. You must make sure you are not starting all over again every time you make a purchase. Don't empty your account to buy a car. Personally, I wouldn't purchase a car that was any more than a 1/4 of my savings.

[new2the3]

Originally Posted by its ray den

unless you get really lucky in the stock market, you're not buying any BMW in cash by next june other than the car you're leasing now.

that would normally be true. The 135i I want is 42k msrp. We have 3 BMW's coming off lease in June and my mothers Benz also ends in June. We have remained good friends with our salesman from 1997 when my dad leased his first bmw (528i). We were recently in for service and he said when the leases are up we need to see him and he will beat any offer we can get. I do believe him since in the past he would personally pick up my dad’s 528i from our house and leave his personal bmw for my dad to use while his car went for service. So I plan on receiving invoice on my 135i.

I will have 20k cash of my own and my dad will pay the other 20k cash as the last car he will help/purchase for me. I recently graduated college and am going to law school fall of 09 so the 20k is in essence a gift.

[its ray den]

gotcha

i thought you wanted to pay cash with what you had saved.

a little off topic.. but why would you want a 135 for 40k when you can get a decently spec'd 335 for about the same? i would prefer the bigger car with less amenities.

[chuck92103]

Originally Posted by new2the3

I currently have 6k in my savings account @ 3.75 APY. I plan on getting a temp job from January-June and save up another 15k. In June I will use the money to pay for a 135i when my lease is up.

Is the savings account @ 3.75 APY my best option for the short time period? I really do not know much about investments so if someone could suggest I do something else with the money that would be helpful.

A. stick with my savings @ 3.75 APY
B. Recommend an investment greater than 3.75 APY with little risk and I can cash out in June.

Thank you for the help.

Are you saying you only have $6k in savings total?

If so turn the car back in when the lease is up.