(10-09-2015 09:43 AM)Redwingtom Wrote:  Yeah...why would anyone keep a bunch of money is a savings account making pennies. I'm actually surprised the number's not higher.

For several reasons. Because sometimes you need cash and other methods are not as easy to access.

Also because many people don't trust other methods of "savings"

(10-09-2015 09:30 AM)Kronke Wrote:  Who actually keeps money in a 0.10% savings account? I have $5 in mine, only because they make you open one when you open a rewards checking account with my credit union.

I've been using lending club for a couple of years, pulling in between 6-9% on the loans.

(10-09-2015 09:57 AM)Bull_In_Exile Wrote:  

(10-09-2015 09:30 AM)Kronke Wrote:  Who actually keeps money in a 0.10% savings account? I have $5 in mine, only because they make you open one when you open a rewards checking account with my credit union.

I've been using lending club for a couple of years, pulling in between 6-9% on the loans.

Okay you got my attention. Can you give me more info? I have several thousand in a savings account.

(10-09-2015 09:47 AM)Fitbud Wrote:  

(10-09-2015 09:43 AM)Redwingtom Wrote:  Yeah...why would anyone keep a bunch of money is a savings account making pennies. I'm actually surprised the number's not higher.

For several reasons. Because sometimes you need cash and other methods are not as easy to access.

Also because many people don't trust other methods of "savings"

HUH???

I have a savings and checking account at a credit union. I have a ATM card. I can take money from either account anytime I want. Is it really that difficult???

(10-09-2015 09:22 AM)South Carolina Duke Wrote:  

(10-09-2015 08:53 AM)HeartOfDixie Wrote:  Is it just referring to an actual commercial savings account?

I don't find this that odd if it is.

Hell, I keep nothing in my day-to-day bank's savings account. Why would I?

So if you needed cash you are not liquid enough for that?

That would be in one of my checking accounts.

(10-09-2015 09:19 AM)VA49er Wrote:  

(10-09-2015 08:53 AM)HeartOfDixie Wrote:  Is it just referring to an actual commercial savings account?

I don't find this that odd if it is.

Hell, I keep nothing in my day-to-day bank's savings account. Why would I?

I was understanding it as savings in general, not just a traditional bank savings account.

Yea, I thought so too until I saw the way they asked the question and it made me second guess that.

If it is in just savings, which I could see as possible. That is a terrible thing.

(10-09-2015 09:47 AM)Fitbud Wrote:  

(10-09-2015 09:43 AM)Redwingtom Wrote:  Yeah...why would anyone keep a bunch of money is a savings account making pennies. I'm actually surprised the number's not higher.

For several reasons. Because sometimes you need cash and other methods are not as easy to access.

Also because many people don't trust other methods of "savings"

But, why would you keep that in a savings account?

You will be shuffling money around regardless. The savings account is just another little level to have to work money through for those that use them.

Keep it in a checking account, or keep it elsewhere.

I think the consensus on here is that the classic savings account is sort of outdated.

(10-09-2015 10:08 AM)Fitbud Wrote:  

(10-09-2015 09:57 AM)Bull_In_Exile Wrote:  

(10-09-2015 09:30 AM)Kronke Wrote:  Who actually keeps money in a 0.10% savings account? I have $5 in mine, only because they make you open one when you open a rewards checking account with my credit union.

I've been using lending club for a couple of years, pulling in between 6-9% on the loans.

Okay you got my attention. Can you give me more info? I have several thousand in a savings account.

https://www.lendingclub.com/

Basically you micoloan. People apply to lending club for loans and they check credit and do some very basic background checks. Then the loan in divided up into 25$ notes with an interest attached you can then buy some of the notes.

You search through loans by setting parameters. A persons credit score, their debt, the number of credit inquiries, debt to income ratio, and if desired an interest class:

A 6.76%
B 9.98%
C 13.29%
D 16.66%
E 19.67%
F 24.18%
G 26.90%

I usually stick with A and B, occasionally Ill invest in a C if the person is not asking for too much.

About 95% of the loans I've put out were either paid back in full or are on schedule to be paid back in full (3 and 5 year terms). Those numbers are consistent with someone else I know who invests with LC.


The other 5% typically pay back about 40% of their value (principle + interest) before defaulting.

(10-09-2015 10:41 AM)Bull_In_Exile Wrote:  

(10-09-2015 10:08 AM)Fitbud Wrote:  

(10-09-2015 09:57 AM)Bull_In_Exile Wrote:  

(10-09-2015 09:30 AM)Kronke Wrote:  Who actually keeps money in a 0.10% savings account? I have $5 in mine, only because they make you open one when you open a rewards checking account with my credit union.

I've been using lending club for a couple of years, pulling in between 6-9% on the loans.

Okay you got my attention. Can you give me more info? I have several thousand in a savings account.

https://www.lendingclub.com/

Basically you micoloan. People apply to lending club for loans and they check credit and do some very basic background checks. Then the loan in divided up into 25$ notes with an interest attached you can then buy some of the notes.

You search through loans by setting parameters. A persons credit score, their debt, the number of credit inquiries, debt to income ratio, and if desired an interest class:

A 6.76%
B 9.98%
C 13.29%
D 16.66%
E 19.67%
F 24.18%
G 26.90%

I usually stick with A and B, occasionally Ill invest in a C if the person is not asking for too much.

About 95% of the loans I've put out were either paid back in full or are on schedule to be paid back in full (3 and 5 year terms). Those numbers are consistent with someone else I know who invests with LC.


The other 5% typically pay back about 40% of their value (principle + interest) before defaulting.

Wow that's pretty cool.

I wouldn't mind doing something like that. I wouldn't go any higher than "C" however. That's freaking extortion.

(10-09-2015 10:36 AM)HeartOfDixie Wrote:  

(10-09-2015 09:47 AM)Fitbud Wrote:  

(10-09-2015 09:43 AM)Redwingtom Wrote:  Yeah...why would anyone keep a bunch of money is a savings account making pennies. I'm actually surprised the number's not higher.

For several reasons. Because sometimes you need cash and other methods are not as easy to access.

Also because many people don't trust other methods of "savings"

But, why would you keep that in a savings account?

You will be shuffling money around regardless. The savings account is just another little level to have to work money through for those that use them.

Keep it in a checking account, or keep it elsewhere.

I think the consensus on here is that the classic savings account is sort of outdated.

I would say it's more like bell bottom jeans... It's out of style right now but if conditions change (interest rates go up) it could be worth it.

(10-09-2015 10:41 AM)Bull_In_Exile Wrote:  

(10-09-2015 10:08 AM)Fitbud Wrote:  

(10-09-2015 09:57 AM)Bull_In_Exile Wrote:  

(10-09-2015 09:30 AM)Kronke Wrote:  Who actually keeps money in a 0.10% savings account? I have $5 in mine, only because they make you open one when you open a rewards checking account with my credit union.

I've been using lending club for a couple of years, pulling in between 6-9% on the loans.

Okay you got my attention. Can you give me more info? I have several thousand in a savings account.

https://www.lendingclub.com/

Basically you micoloan. People apply to lending club for loans and they check credit and do some very basic background checks. Then the loan in divided up into 25$ notes with an interest attached you can then buy some of the notes.

You search through loans by setting parameters. A persons credit score, their debt, the number of credit inquiries, debt to income ratio, and if desired an interest class:

A 6.76%
B 9.98%
C 13.29%
D 16.66%
E 19.67%
F 24.18%
G 26.90%

I usually stick with A and B, occasionally Ill invest in a C if the person is not asking for too much.

About 95% of the loans I've put out were either paid back in full or are on schedule to be paid back in full (3 and 5 year terms). Those numbers are consistent with someone else I know who invests with LC.


The other 5% typically pay back about 40% of their value (principle + interest) before defaulting.

So, if a person defaults are you just SOL?

(10-09-2015 10:33 AM)HeartOfDixie Wrote:  

(10-09-2015 09:22 AM)South Carolina Duke Wrote:  

(10-09-2015 08:53 AM)HeartOfDixie Wrote:  Is it just referring to an actual commercial savings account?

I don't find this that odd if it is.

Hell, I keep nothing in my day-to-day bank's savings account. Why would I?

So if you needed cash you are not liquid enough for that?

That would be in one of my checking accounts.

I understand. But do you have an emergency fund at all?

I have :

Checking --Liquid
Savings-- Liquid
Emergency--Liquid

401k
Investments

The survey results in question refer to all savings. The numbers jive pretty closely with another recent survey that found that nearly half of all Americans would either need to sell something or get a loan to cover an unexpected $400 expense. The reality is most Americans live pay check to paycheck. Welcome to the most recent "economic recovery".

http://www.dailymail.co.uk/news/article-...money.html

(10-09-2015 10:45 AM)Fitbud Wrote:  Wow that's pretty cool.

I wouldn't mind doing something like that. I wouldn't go any higher than "C" however. That's freaking extortion.

Send me an email in a PM and I will shoot you a promotional invite they have. (put x amount in and the give you some money to invest on top of it)..

I stay away from them because they default more often than A's and B's.

If C (13%) is not extortion it's hard to see how D (16%) is. Also the D's and above are pretty rare. Right now I don't see any available. People who are less risk averse than me buy them up.

Is 25% too high? Perhaps but it depends. If you have terrible credit no money and your car breaks down how do you get to work?

Borrow 1,500 at 25% on a three year note from Lending Club and you pay back 2,800 over three years at less than 80 a month. And Keep your car/job.

It's not ideal but it's nothing like those payday lending places.

(10-09-2015 10:52 AM)South Carolina Duke Wrote:  

(10-09-2015 10:33 AM)HeartOfDixie Wrote:  

(10-09-2015 09:22 AM)South Carolina Duke Wrote:  

(10-09-2015 08:53 AM)HeartOfDixie Wrote:  Is it just referring to an actual commercial savings account?

I don't find this that odd if it is.

Hell, I keep nothing in my day-to-day bank's savings account. Why would I?

So if you needed cash you are not liquid enough for that?

That would be in one of my checking accounts.

I understand. But do you have an emergency fund at all?

I have :

Checking --Liquid
Savings-- Liquid
Emergency--Liquid

401k
Investments

I don't position my money like that.

I keep plenty in various checking accounts, which is probably a few percent of my total assets. That's entirely liquid.

It is more than enough to cover whatever would come up for me, loss of my job or whatever else.

I don't play in the stock market or in bonds or anything like that. My investments are all particular so if I needed to cash out I can on short notice. It would suck but I could do it.

(10-09-2015 10:49 AM)VA49er Wrote:  

(10-09-2015 10:41 AM)Bull_In_Exile Wrote:  

(10-09-2015 10:08 AM)Fitbud Wrote:  

(10-09-2015 09:57 AM)Bull_In_Exile Wrote:  

(10-09-2015 09:30 AM)Kronke Wrote:  Who actually keeps money in a 0.10% savings account? I have $5 in mine, only because they make you open one when you open a rewards checking account with my credit union.

I've been using lending club for a couple of years, pulling in between 6-9% on the loans.

Okay you got my attention. Can you give me more info? I have several thousand in a savings account.

https://www.lendingclub.com/

Basically you micoloan. People apply to lending club for loans and they check credit and do some very basic background checks. Then the loan in divided up into 25$ notes with an interest attached you can then buy some of the notes.

You search through loans by setting parameters. A persons credit score, their debt, the number of credit inquiries, debt to income ratio, and if desired an interest class:

A 6.76%
B 9.98%
C 13.29%
D 16.66%
E 19.67%
F 24.18%
G 26.90%

I usually stick with A and B, occasionally Ill invest in a C if the person is not asking for too much.

About 95% of the loans I've put out were either paid back in full or are on schedule to be paid back in full (3 and 5 year terms). Those numbers are consistent with someone else I know who invests with LC.


The other 5% typically pay back about 40% of their value (principle + interest) before defaulting.

So, if a person defaults are you just SOL?

So what's the average amount of the principal? How much are tyeing up for 6-9%

(10-09-2015 10:55 AM)Bull_In_Exile Wrote:  

(10-09-2015 10:45 AM)Fitbud Wrote:  Wow that's pretty cool.

I wouldn't mind doing something like that. I wouldn't go any higher than "C" however. That's freaking extortion.

Send me an email in a PM and I will shoot you a promotional invite they have. (put x amount in and the give you some money to invest on top of it)..

I stay away from them because they default more often than A's and B's.

If C (13%) is not extortion it's hard to see how D (16%) is. Also the D's and above are pretty rare. Right now I don't see any available. People who are less risk averse than me buy them up.

Is 25% too high? Perhaps but it depends. If you have terrible credit no money and your car breaks down how do you get to work?

Borrow 1,500 at 25% on a three year note from Lending Club and you pay back 2,800 over three years at less than 80 a month. And Keep your car/job.

It's not ideal but it's nothing like those payday lending places.

I get what you are saying. I just know I lose my mind when I see credit cards that charge 13%.

I just couldn't do that to someone.

I agree earning 7% in one year on say 1000 is great. I just don't feel comfortable having my money tied up for that long.

(10-09-2015 10:49 AM)VA49er Wrote:  

(10-09-2015 10:41 AM)Bull_In_Exile Wrote:  I usually stick with A and B, occasionally Ill invest in a C if the person is not asking for too much.

About 95% of the loans I've put out were either paid back in full or are on schedule to be paid back in full (3 and 5 year terms). Those numbers are consistent with someone else I know who invests with LC.


The other 5% typically pay back about 40% of their value (principle + interest) before defaulting.

So, if a person defaults are you just SOL?

Well they try to go to collections but typically yea, you lose whats left on that loan.

The last default I had was a 25$ note which paid back 21$ (principle + interest) so I am out 4$ and the opportunity cost lost by not investing in someone else.

The worst one I ever had only paid back 5 of 25 dollars before defaulting.

When people do pay late you get a late payment fee on top of the payment.

(10-09-2015 10:49 AM)VA49er Wrote:  

(10-09-2015 10:41 AM)Bull_In_Exile Wrote:  

(10-09-2015 10:08 AM)Fitbud Wrote:  

(10-09-2015 09:57 AM)Bull_In_Exile Wrote:  

(10-09-2015 09:30 AM)Kronke Wrote:  Who actually keeps money in a 0.10% savings account? I have $5 in mine, only because they make you open one when you open a rewards checking account with my credit union.

I've been using lending club for a couple of years, pulling in between 6-9% on the loans.

Okay you got my attention. Can you give me more info? I have several thousand in a savings account.

https://www.lendingclub.com/

Basically you micoloan. People apply to lending club for loans and they check credit and do some very basic background checks. Then the loan in divided up into 25$ notes with an interest attached you can then buy some of the notes.

You search through loans by setting parameters. A persons credit score, their debt, the number of credit inquiries, debt to income ratio, and if desired an interest class:

A 6.76%
B 9.98%
C 13.29%
D 16.66%
E 19.67%
F 24.18%
G 26.90%

I usually stick with A and B, occasionally Ill invest in a C if the person is not asking for too much.

About 95% of the loans I've put out were either paid back in full or are on schedule to be paid back in full (3 and 5 year terms). Those numbers are consistent with someone else I know who invests with LC.


The other 5% typically pay back about 40% of their value (principle + interest) before defaulting.

So, if a person defaults are you just SOL?

I believe your investments are spliced, not unlike a ETF or mutual fund. One $25 note is compiled of fractions of thousands of different loans, meaning the risk of 1 person defaulting is spread among the pool of investors.

If anyone want's an invite pm me. I *think* the invites from other members mean if you invest 500 or so you get an extra hundred but it's been awhile so that may have changed..

Full disclosure - If I invite enough people I get 25$ so if you *really* hate me just go to the site and sign up yourselves