Bank deposit on hold

[BCClone]

Interest was always 6 percent, which was sometimes more than I was earning in investments, especially during the early 2000s, during the downturn and later when we had another downturn (2008?). The way I looked at it, not only was I making 6 percent interest, but I wasn't paying 8 or 9 percent or however much banks charge on a loan nowadays. So If you figure the average S&P 500 annual return is 10-11 percent, I was actually doing better than that. Now, I wouldn't recommend borrowing your way to wealth, but I suppose Dave Ramsey and Donald Trump would disagree with that as well.

Banks have been well under 6% borrowing for quite some time. If you used a home mortgage and itemized, you could be talking a rate of 2 percent. I just took out a loan for solar panels for a business, 5 years at 2.72 percent at a credit union that will pay back one percent in dividends so it's an effective 1.72 percent loan. I think you may have to go back to the early 2000s to get interest rates of 6% or higher.

 

[BCClone]

I had savings. The difference is if I used my savings instead of my 401K it would have been difficult to "pay it back." But because there was already a mechanism in place to pay back my 401K (right out of my paycheck so I didn't even miss it), it was easier to do it that way. So I wound up eventually with the same amount of money in my 401K, plus 6 percent interest, but I wouldn't have necessarily paid back my savings because the same mechanism -- to deposit money out of my check straight to savings -- wasn't available at my work. I suppose I could have set one up privately, but why when there was already a mechanism in place?

In addition, my 401K was paid back through my paycheck before taxes were taken out. So that portion of my income wasn't taxed. If I set up a private mechanism to pay my savings account back, it wouldn't have been a pre-tax withdrawal like the 401k withdrawal was. It was a no-brainer for me. You can call it stupid all you want. Neither you nor Dave Ramsey will ever convince me that what I did was stupid.

People can do what they want, I honestly don't care as long as it doesn't affect me, but the not borrowing from a 1-2% savings account and then having that earn 6% while your 401k earns around 10% because you don't want to set up an automatic transfer is interesting. While interesting, it isn't surprising from when I worked in a bank.

 

[jackrabbit]

No

How many business days has it been since you deposited the check? (Not how many calendar days) So don't count weekends or holidays.

 

[1100011CS]

How many business days has it been since you deposited the check? (Not how many calendar days) So don't count weekends or holidays.

Last Monday so 5 business days. I just think it's ridiculous that, in the 21st century, it takes more than a day to approve a check *from another bank*. Just call the damn bank.