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Where to STASH Your Affiliate CASH

Posted on November 02, 2007 by Tim Schroeder

Let me premise this post with saying that one should reinvest much of your affiliate income back into your business for quicker growth. That’s kind of a given. However, before you do this it’s usually a good idea to have a nice “emergency” cash stash set aside for those hard times. Nobody thinks it will happen to them but shit happens and you want to be prepared.

Many of you are aware that with the Federal Reserve cutting interest rates, your yields on savings account continues to drop. Nevertheless, if you holding a large amount of money in a regular bank’s savings account you are losing out on a lot of free money.

So Where do I Recommend Stashing Your Affiliate Cash?

1. Emigrant Direct:

The Emigrant Direct high yield savings account currently yields a respectable 4.75%. This is where I currently have my reserve cash fund. The are no minimums to open an account. There are no fees top open or close an account. You can then link your regular savings checking account with Emigrant Direct and withdraw or deposit funds in 24 to 48 hours.

I also have one of their Mastercards which gives you 1.40% cash cash back on all purchases if you have at least $10,000 in your Emigrant Savings Account.

Click Here to Read More About The Emigrant Direct Savings Account.

2. WT Direct:

The WT Direct high yield savings account has one of the highest yields I could find at 5.06%. Like Emigrant Direct, WT Direct has no minimums to open an account and no fees. The catch is that to get the 5.06%, you need to have at least $10,000 in the account. You are probably going to want to have at least that much in your emergency account anyway.

If you don’t have $10,000 to put in this WT Direct savings account you are better off going with another option since your yield will drop to just 0.60% after 60 days. No checking account is required in order to get the high rate but you will need a checking account to open an account with the next recommendation.

Click Here to Read More About The WT Direct Savings Account.

3. ING Direct:

Click here to start saving with ING DIRECT!

An ING Direct Orange Savings account is another popular choice. They used to do a lot of TV advertising in my area. They offer a lower but still respectable 4.20% APY. As with my other two recommendations, ING Direct savings accounts have no minimums or fees.

Click Here to Read More About The ING Direct Savings Account.

Why Go High Yield? Here’s A Quick Example:

$25,000 in a regular Bank of America savings account currently yields 0.20% and would earn you a measly $50 in interest over a year’s time. $25,000 in a Emigrant Direct savings account which currently yields 4.75% would earn you a much better $1,187.75 in interest over a year’s time.

Now if you know for fact that you are not going to need your emergency cash for at least six month or a year you could consider a higher yielding CD or money market account. However, I’d rather sacrifice a slightly higher yield for knowing that access my savings within one or two days without any penalties.

I personally setup an incorporated company (S-Corporation) and a solo 401k. Believe me, there are lots of advantages to setting up a corporation even if you are not earning huge amounts of money. Talk to an account about it or do some research online.

One of the biggest benefits is that I can pay myself a monthly dividend payment on top of my usual set salary. This dividend payment is taxed at just 15%. In addition, I used to have a SEP-IRA but rolled this over into a Solo 401k which allows me to contribute a much larger amount of money towards my retirement. At the moment I contribute $1,000 a month into this 401k as my employee contribution and then make a large lump sum at the end of the year as my employer contribution.

Anything extra after I fund my retirement and pay my bills goes into my high yield savings account.

Have You Setup an Emergency Fund? Where Are You Keeping Your Money?

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10 Responses to “Where to STASH Your Affiliate CASH”

  1. Erik Karey

    - 2nd Nov, 07 07:11pm

    Good article…I’ve been looking into high yield savings accounts recently and thought about using ING because I’ve heard such good things about their service. Have you tried them? Or would you recommend Emigrant?

  2. Tim Schroeder

    - 2nd Nov, 07 08:11pm

    Hey Erik,

    I’ve only used Emigrant Direct without any problems but I think ING is also a safe pick (with a somewhat lower yield).

  3. Michael Woo

    - 3rd Nov, 07 07:11am

    hmm.. now I know where to invest those cash 🙂

  4. Ruchir

    - 4th Nov, 07 11:11am

    Cool services there. Never knew about them…

  5. Michael Woo

    - 5th Nov, 07 04:11pm

    Hi there! I’m back visiting your blog again! 🙂 But this time I need some comment and to see what you think about this. I need your feedback on an evil masterplan that I’m up to. It’s about getting loads of traffic through social media sites – It’s the first post on my blog – let me know whether will it work or not 🙂

    I would really appreciate any comments. Thanks! Cheers! 🙂

  6. Brian

    - 5th Nov, 07 08:11pm

    Tim,

    I would LOVE to see you do a ful, article about going corporate and paying your self…

    I can’t find an accountant near me who has a clue. so for now i’m getting owned and using my personal SSN. 🙁

    “you make money off the internet??” is usually the dumb-look reply i get from accountants i’ve been to.

  7. Make Friends, Earn Money

    - 4th Jun, 08 06:06pm

    personally I think that you can’t go wrong with ING, they are a well recognised name and they have some superb rates especially if like me you like to bank online. Nice overview of the other sites, but I think I’ll stick with ING.

  8. Carrie

    - 6th Jul, 08 04:07pm

    Thanks. Never heard of WT Direct before. I’m going to give it a shot. I like both Emigrant and ING Direct though.

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