If you’re looking for a high yield savings account, the Ford Credit Money Market Account may be a good option for you. You can start your account with as little as $1,000, which isn’t too terrible but may pose a problem for some. Here are the current rates for this week:

For amounts under $15,000, the rate is 4.15% with an APY of 4.23%

For amounts $15,000 to $50,000, the rate is 4.3% with an APY of 4.39%

For amounts over $50,000, the rate is 4.45% with an APY of 4.54%

They pay interest on a tiered interest rate system, so the more money you have with them, the better the interest rate is for you. Many banks do this to gain more of your business. They offer telephone and online access 24 hours a day, free online transfers, and checks. Checks must be written for an amount larger than $250.00 and you can write as many as you’d like. There are no fees if you balance is above $1,000.

Possibly the largest drawback for the Ford Credit Money Market “Ford Interest Advantage” Account is that it is not FDIC insured, so if you’re the kind of person that likes the peace of mind offered by the FDIC, this may not be the account for you. If you are willing to take a risk and don’t mind not being backed by the FDIC, then I’d invest in the Ford Interest Advantage Account.

Posted under Save Your Money

If you’re like most Americans, you’ve either already received or are planning on receiving a large tax refund from the U.S. government. Of course, pretty much all of us have plans for our tax refunds.

First of all, getting money back from the government can be looked at as a negative experience. You’ve just let Uncle Sam borrow your money interest free. For most people, they enjoy getting money back from their taxes. If you are able to, change your W4 so you get more money back from your paycheck each month. Then you can set up an automatic transfer to occur from checking to savings monthly to help you automatically save. For tips on how to start saving money, check out this post. For now though, you’re already getting money back this year, so what are you going to do with it?

Pay off debt.

This is probably the most logical plan of all. You’ve got some extra money that you didn’t have before, and why not use it to pay off debt? Personally I would take a large chunk, say 50% of it and use the money to reduce or pay off the highest interest rate credit card or unsecured loan. That way, you’ve reduced what you are paying each month or have reduced what you owe.

Put some money in a high yield online savings account.

If you start a high yield online savings account, you are ensuring that you are getting a good interest rate on the money you are saving that brick and mortar banks just can’t touch. High yield online savings accounts are the way to go.

Make an IRA contribution.

Obviously if you are a student or younger than 21, than you can’t do this, but if you are over 21, are employed and have income then you should do this. I would use the money to start or fund a Roth IRA. With a Roth IRA, you will not qualify for a tax deduction, but the money that you put in and the interest that grows will not be taxed by the government. It is an awesome deal!

Start saving for a down payment on a home.

A home is an investment, and it’s a good idea to put some money down. Sock away as much cash as possible while you are renting. It’s a good rule of thumb to have at least 5% down. Of course, 20% is ideal, but that is very hard to save any more.

Start a college savings account or 529 plan for your child.

If you have a child and you haven’t been able to start saving for college, here is your chance. Try to meet with a financial adviser that can steer you in the right direction of a good 529 plan. Normally your local bank will have someone at the branch that can help you out. Get their opinion, but also get a second opinion. A good adviser will not pressure you into doing something you don’t want to do, and will give you advice no matter how small you may be starting with.

Make smart home improvements.

If your roof is in desperate need of replacing, or your carpet has seen its better days, by all means use some of the money to increase the value in your home. More equity equals more money! If your idea of “home improvements” is a new flat screen LCD TV, you may want to think twice about that “home improvement”.

These are just a few ideas that will help you figure out what is the best way to use your money. Comments or questions? Put them here.

Posted under Economy, Pay Off Debt, Save Your Money

The last time I updated this, I owed $12,333.78 on the student loan. As of today, the current balance owed is $11,899.22! I am happy that it has fallen below the $12,000 mark!

I got paid a quarterly bonus and put most of it towards the student loan. Also, I have paid off the Home Depot Credit Card that had 0% for 12 months before the promotional period expired.

Ultimately, I’d like to pay off this student loan before the year is over, but that seems like a pretty hefty goal, so I’m going to go with 2 years, or 24 months to have it paid off.

Posted under My Debt Reduction, Pay Off Debt, Student Loans