Thursday, April 06, 2006

Young Professionals Frugal Living Guide - Part 10

The Frugal Living series will take a look at some of the steps that the Young Professionals use to save a little extra dough on the things that we buy.

One of the things that you can do to save a little extra money (actually, earn a little extra money) is to take advantage of some of the various deals that are offered from online savings banks from time to time. Not only will you earn some extra money at signup time, but you get a much better rate than you would at your local bank.

For instance, if you would like to open an online savings account with ING Direct (their current APY is 4%), you should ask someone for a referral. This referral will allow you to get $25, if you deposit $250, and the referrer will get $10. A good deal for everyone involved.
SHAMELESS PLUG: I have some referrals left, so if you are interested, just contact me.

HSBC Direct also has an account openning bonus of $25. Their current APY is 4.8%, but that is only through April 30, 2006 (don't yet know what it will change to after that date). In order to get the bonus, sign up on this page (HSBC Online Savings) and use the promo code: start

Emigrant Direct also has a referral bonus, but it is not an official one. To get this bonus, check out the Emigrant Direct Signup Opening Bonus post at MyMoneyBlog. The current APY at Emigrant Direct is 4.5%.

VirtualBank has a $20 referral bonus through MyMoneyBlog. Check out the VirtualBank: $20 Referral Bonus for New Accounts post. Their current APY is 4.6%.

NOTE: A great tool to check out when dealing with all these online savings accounts is the Rate Chaser tool at MyMoneyBlog. This can help you decide if you should move your money from one account to the other when they change the APY.

These online savings banks are a great place to hold your extra money. For instance, I have some money that I use as my emergency fund in ING Direct and Emigrant Direct. These have great rates and you can transfer the money in and out online from your local bank in just a few days. It sure beats the 1.4% that my local creadit union money market account was paying me.

Next: Young Professionals Frugal Living Guide - Part 11

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