Tuesday, March 11, 2008

A brighter side

Being an insufferable optimist does have its benefits.

Not only does it balance my inner Eeyore, it softens the blow of disappointments.

Delaying my debt payoff so I can build my emergency fund to $10,000 is such a case. I have been a tad down at having to revise my financial goals to accommodate job uncertainty. So I started researching what I could earn once I hit my savings target. 

Thankfully, my current bank will pay 2.82% APY -- double what I now have -- once I reach the mark. This is almost as much as the rate I pay on my student loan.

So by October I will begin accruing nearly $25 a month in interest income. Not only will this be the most I have ever received on my cash savings, it will ease the pain of prolonging monthly interest payments of about $38 on my student loans.

I may be able to find better deals at other banks, but the convenience of having my checking and savings at the same institution is valuable to me. Transfers immediately appear in my checking account when emergencies arise, and refunding my savings account is just as instantaneous.

Sometimes it is important to take comfort in the little things.


ldub said...

plus! your student loan interest is tax-deductible. yay! very cool. if you decide to put a hunk of the ER fund (when it gets bigger), you might try something like ING which has a higher rate and an opening bonus, even though it's harder to get at. i set up both an orange savings acct and an electric orange acct so that, if i need the money right away, i can use the debit card for the electric orange account. that works for me and lets me stay at the higher interest rate than my own bank.

Anonymous said...

so, with your interest, it's like you'll only be out $10 a month on your student loan! woo!

you're doing great ... kicking ass and taking names. i can't wait to see how fast you build this up!

-- scoopgirl