Medicated Money

Monday, July 31, 2006

Emigrant Direct & Our Emergency Fund

"What we fear comes to pass more speedily than what we hope." -Publilius Syrus

The Emigrant Direct Website updating did two things for us last week. First, the fear of all hell breaking lose over there made me nervous in having that much money wrapped in a bank that I may not have access to for an unknown amount of time! To be honest, I never cared for their old website (and I guess neither did anyone else, hence the change), but it was so basic it made me nervous about whoever hires the IT personal ED. Secondly, the fact that their rate was only 5.15% and our car loans are roughly the same, most would call it an even draw on whether or not to use this money to pay off these loans. The way I see it, I probably am breaking even money with the taxes I pay on the interest accrued from the ED account and the car loans, yet the emotional feeling of having those cars paid off is getting to the point of sheer desire. Because of this, we decided to change things up.

To take care of the first issues, we transferred $1,650 to a money market account at our credit union that recently changed their interest to 4.85%. We have access to this money immediately as it is tied into our checking account and takes 15 seconds to transfer the money instead of the 3 days that it takes ED. That took a little of the stress away from not being able to have access to this money.

We decided then to take $2,000 and put it towards Car Loan #2. We figured this would help pay off the account a little faster and keep us on track for our debt repayment plan. I truly feel the emotional benefit of this is worth the little financial offense it may be.

As discussed before, we knew that we may eventually need this money for relocation back to the Northeast. With the purchases of flights as well as a security deposit for our new town home, we took an additional $1,200 out of this account to help pay for these unscheduled bills.

All in all, we are pleased with these decisions. And, don’t worry, our emergency account still sits at a nice little cushion at ED, however we may need to tap into it a little more to help pay for the move. However, we first decided to suspend the Debt Repayment Plan for the month of August, so hopefully it will not need to be touched! We’ll see, though.


  • On August 1st, the Emegrant Direct website is no longer available. Once again, I am sure that there incompetent IT department made another change without planning or testing.

    As soon as the site is back up, I am transferring all of my money out of the bank. I can't trust them anymore.

    By Anonymous Anonymous, at 7:46 AM, August 01, 2006  

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