My post about ING Direct has got me to thinking: Where do you park and build your savings accounts?
I’m talking about your emergency savings account, down payment savings, "oh no, the laptop is about to explode!" savings, etc.
Do you keep them in a brick & mortar bank? An online bank? A CD? A money market fund (thanks, Flexo, for clarifying what that is). What sorts of interest rates are you getting right now?
Maybe you use a variety of savings vehicles.
For our emergency fund, I’m looking for high interest rates, no fees, and the ability to get it fast if I need to.
Another question for you:
What’s the "ideal" percentage of income you should be saving each month? I’ve heard 10-12 percent tossed around, but I don’t know what that’s based on. Is that 10 percent of your gross income? Or net? And, is that totally in addition to your retirement savings, or is that all combined?
Dear readers, help me out! What are your thoughts?