Best ways to save money right now?

@Brian Murphy32

Thanks for the input. I might actually look into some CDs since I’m pretty clueless when it comes to anything else. It's the easiest path for me, and honestly, the interest rate doesn't seem half bad.

casualtrucker7 said:Well, look, we've only got one domestic bank left—and you can see how in these foreign places where they don't have our "brilliant" managers running things, there isn't any stealing from the bosses. The Italians and Austrians seem pretty good at protecting what they actually earn over there.

It just goes to show how we handle our own business—if anything, these situations are better when our management isn't involved, since those kinds of robberies just don't happen there...

That holds some water, I suppose, but let me present the other side of the coin...
I don't think foreigners are any better. Just look at the American banks or Hypo Bank, which was taken over by the Austrian state—or rather, became a taxpayer liability for that country.
Ireland, Canada, Greece, Spain, and several others also have massive messes on their balance sheets, if anything, even worse than ours. Aside from Germany and maybe—just maybe—France, and to an extent the Czech Republic, there aren't many healthy economies left.
The current trend is bleak, especially since politicians are once again looking out for themselves.
As soon as there's a hint of exiting the crisis, they turn their backs on the rule of law.
But don't be fooled; things aren't fixed.
It isn't wise to fix one mistake only to stumble straight into another. Every state bank and public institution needs a strictly disciplined, clearly defined budget and policy. There is still a chance to navigate this crisis solidly without liquidating all our remaining assets. The fact that banks are well-capitalized is due to several factors—primarily some semblance of credit standards and Federal Reserve regulations, along with heavy imports that allow banks to earn more on negative interest rates than they would by risking capital on the local economy.
Gentlemen politicians, the holes in your treasury are only going to get wider. Stop lagging behind. Take the helm and manage the crisis decisively, instead of letting the crisis manage you.
Americans aren't bad at everything. There are plenty of people worse than us, and some much better.
There is a chance. We need to take it. The problem is, expecting that from this particular crew is a tall order.
One solution, if a true rule of law actually existed, would be to establish a strong national bank. That way, a portion of those negative interest spreads wouldn't bleed out to foreigners, and that money could be reinvested into the domestic economy where there's actually a shot at making a profit.

For instance, take thishttp://www.credobanka.hr/files/DAB-o...u-depozita.pdf. A few days ago, I actually sent an inquiry over to the DAB asking them to clarify exactly what they mean by deposits held under significantly more favorable terms. I guess they just sent me back the exact same response they gave before.

It honestly strikes me as bizarre that something this critical isn't even listed on their (the DAB's) official website...
And frankly, I'm left scratching my head here: This Decision has been in effect since May 1, 2005. ... which completely contradicts the end of the notice regarding the effective date for the amendments increasing the insurance coverage amounts... 🤷

It felt off to me too, which is why I reached out to the DAB directly. Once they sent over written confirmation that my funds were fully insured, I finally felt like I could breathe again.

FDIC

1061

Pursuant to Articles 11 and 12 of the FDIC Statutes, and in accordance with Article 3, Section 1, Item 4 of the Deposit Insurance Act (as published in the Official Gazette, No. 177/2004), the Agency Administration held its 88th session on April 6, 2005, and issued the following
DECISION
REGARDING THE CRITERIA FOR IDENTIFYING DEPOSITS HELD UNDER SIGNIFICANTLY PREFERENTIAL TERMS

Article 1.

In compliance with Article 3, Section 1, Item 4 of the Deposit Insurance Act (Official Gazette No. 177/04), this Decision establishes the criteria used to identify deposits held within banks under terms that are significantly more favorable than standard rates, or those involving financial conditions that contributed to the deterioration of the bank's stability.

Article 2.

The criterion for identifying the deposits mentioned in Article 1 of this Decision is that they were placed in a bank with an interest rate at least 30% higher than the highest publicly advertised interest rate for that specific type of deposit and maturity period, as defined by the bank's own Decision on Interest Rates for consumer business in effect on the date the deposit agreement was executed.

Article 3.

This decision takes effect upon its publication in the Official Gazette and shall be applied starting from the first day of the month following the month in which it was published.

Ref. No: V-440/05-4

Washington, D.C., April 6, 2005

Chairman of the Administration

Damir Polančec, signed

I haven't been able to find anything more recent, which I suppose means this decision hasn't been amended since then.🤷

casualtrucker7 said:I mean, the second pillar is actually worse—you’re stuck saving until you hit 65 if you're a man or 60 if you're a woman before you even see a cent of that pension, and you don't get those 30% boosts like you do in the third pillar. That’s why they call it a pension; otherwise, most people would probably just blow through all that cash during a recession.

The whole second pillar situation seems pretty questionable to me. In America, only about 10% of people actually reach full retirement age. If you want to access your capitalized funds from the second pillar, the law basically requires you to hit full retirement age first. If you opt for early retirement or disability, the money from that second pillar gets rolled back into the federal budget, leaving you with only the first pillar—that generational solidarity fund, which is really just the government's pocket today. So, based on the stats, does that mean only 10% of people will ever actually see their second pillar funds as a separate payout?

Brian Murphy32 said:The funds are covered by the Democratic Advisory Board up to $133, provided the agreed interest rate doesn't exceed the publicly announced rate by more than 30%. Since you mentioned "some money," I assume we're talking about an amount small enough that it wouldn't trigger those higher negotiated rates anyway, so there's really nothing to worry about. You'll get your cash eventually. Maybe consider a 3-month CD instead; at a 5.2% yield, it’s actually a pretty decent deal, and if things get hairy, you can always pull the funds. Just keep in mind that for this promotional fixed-rate savings account, the early withdrawal penalty is 0.5%, with a minimum charge of $100

Fair enough. Thanks for the info. 🙂

To build on the initial question here—if I wanted to start investing (or just saving) about $45 a month into a money market fund, as mentioned earlier—is that actually doable? Or am I going to need a much larger lump sum to get my foot in the door??🤷

Here’s what the fine print from Bank of America says (though I bet other banks have similar rules):

Minimum initial deposit amount:

* $133
* however, if you set up a recurring transfer tied to an investment fund, the minimum starting amount is $33.

Personally, I try to lean on my credit card as much as possible—just dump my entire paycheck into the fund and then pull from it to pay off the balance whenever it's due. 😉

I’m a complete novice here—so please bear with me, haha! A savings account? If I were to drop my entire paycheck into the fund, how exactly is the interest calculated? I mean—just a little bit at a time—and then you eventually see a small bump in your take-home pay...

It’s not really about "interest"—think of it more like share value. For instance, if you buy 50 shares today at $33 each and sell them a month later for $34 per share, that's your gain.
Just keep enough cash from your paycheck to cover the essentials and put everything else toward your credit card balance.

Charles Ramos7 said:It’s not really about "interest"—think of it more like share value. For instance, if you buy 50 shares today at $33 each and sell them a month later for $34 per share, that's your gain.
Just keep enough cash from your paycheck to cover the essentials and put everything else toward your credit card balance.

And honestly, how many people actually have extra cash left over from their paycheck to toss into a fund? Plus, most folks in America aren't even big on the whole "fund" idea right now. After seeing everything skyrocket a few years ago and then tanking just as fast, people are wary. They say investing in funds is smart, but once you get burned, you don't want to touch it again, right?

What kind of guarantees do these funds even offer? Is there any actual promise they won't just crash and burn?

Look, obviously, you don't get any guarantees when it comes to funds, period. But let's be real—money market funds have proven themselves to be incredibly, incredibly stable over these last 🤔 8 or 9 years. I mean, sure, some of them have seen tiny little dips here and there during their fiscal years, but honestly? It’s barely worth mentioning. I hate to say "never say never," but their investment structure is rock solid. They aren't going to give you some mind-blowing, spectacular returns that make you a millionaire overnight, but they offer steady, consistent growth.

Kimberly Nguyen said:Look, obviously, you don't get any guarantees when it comes to funds, period. But let's be real—money market funds have proven themselves to be incredibly, incredibly stable over these last 🤔 8 or 9 years. I mean, sure, some of them have seen tiny little dips here and there during their fiscal years, but honestly? It’s barely worth mentioning. I hate to say "never say never," but their investment structure is rock solid. They aren't going to give you some mind-blowing, spectacular returns that make you a millionaire overnight, but they offer steady, consistent growth.

Well, some actually do offer them, but hey, maybe I was overthinking things. Personally, I've got cash in a fund that guarantees I won't walk away with less than I put in.

but money market funds have been super, super steady over these last 🤔 8-9 years... some funds saw tiny little dips during their fiscal years, but honestly, nothing worth mentioning... you can't say never, but their investment structure is incredibly solid... they don't pull crazy returns, but the growth is constant.

What’s the actual setup for those mutual funds anyway? I'm pretty out of the loop on this. Are they super conservative or what? What kind of returns are we talking about—higher than 6%? And how long do I need to park my money there before I hit some kind of limit?

Man, so many questions! 🤣

Right now, he’s sitting at roughly 8.5% annually, but let's be honest—that's just one lucky year... I really love this site... you can find all the data, the charts, and the actual returns right here

blueridge32 said:Well, some actually do offer them, but hey, maybe I was overthinking things. Personally, I've got cash in a fund that guarantees I won't walk away with less than I put in.

but money market funds have been super, super steady over these last 🤔 8-9 years... some funds saw tiny little dips during their fiscal years, but honestly, nothing worth mentioning... you can't say never, but their investment structure is incredibly solid... they don't pull crazy returns, but the growth is constant.

What’s the actual setup for those mutual funds anyway? I'm pretty out of the loop on this. Are they super conservative or what? What kind of returns are we talking about—higher than 6%? And how long do I need to park my money there before I hit some kind of limit?

Man, so many questions! 🤣

But that usually comes with a specific maturity date, right? Like with Fidelity and those types of products.

blueridge32 said:And honestly, how many people actually have extra cash left over from their paycheck to toss into a fund? Plus, most folks in America aren't even big on the whole "fund" idea right now. After seeing everything skyrocket a few years ago and then tanking just as fast, people are wary. They say investing in funds is smart, but once you get burned, you don't want to touch it again, right?

What kind of guarantees do these funds even offer? Is there any actual promise they won't just crash and burn?

Well, maybe $280 $100/month 😉 could work.
Money market funds aren't the same as stock funds; there's no absolute guarantee, but these funds invest in government-backed securities.
You can move money in and out every day without paying fees.
Personally, I usually just toss everything in and pull it out whenever I need it...

Kimberly Nguyen said:But that usually comes with a specific maturity date, right? Like with Fidelity and those types of products.

aha, Fidelity and Amazon... except those specific tranches aren't available right now. Something similar is hitting the market soon, but it's a trade secret! 😁

Once my current CD matures next year, I’m planning to move some funds into a structured product with principal protection (not quite the one you're looking at). It’s actually a bit of an unconventional move for me: I have some USD sitting around earning next to nothing, and if I put those dollars into this, even if the fund just breaks even, I’ll still come out ahead compared to what I'd get from a standard savings account.

There is one catch with these types of products, though: they guarantee the principal without actually putting it at risk, essentially guaranteeing something that wasn't exposed to the downside to begin with.