A penny saved is a penny earned -- no matter how old. Image:scmikeburton/Flickr/CC BY-ND

June Gregg was given a 100th birthday party Thursday — not by family or friends, but by her bank. The Huntington Bank branch in Chillicothe, Ohio, was grateful for Gregg’s loyalty. She has kept the same savings account since 1913.

Before World War I

June Gregg’s nearly century old bank account came to the bank’s attention when Gregg mentioned to a friend that she has the same account that her father opened for her before World War I. That friend informed the bank manager, Doug Shoemaker, who checked into records and learned that it was true. In all that time, the account number had only changed once, when the Huntington Bank acquired what had previously been called the Chillcothe Savings Bank in the early 1980s.

Gregg said her father, Gilbert, a wheat farmer,  began the account in 1913, when she was a year and a half old. The original deposit was $6.11. He had wanted his daughter to learn the value of thrift and saving, and it seems the lesson took.

Stay out of debt!

“That’s what he always taught us: to stay out of debt and save our money and not buy anything until we had the money to pay for it,” said Gregg to the press. “I don’t have many wants.”

Gregg never married and has no children. In 1932 she opened a store and later worked for the post office. She worked there for more than 25 years and retired in 1976.

Loyalty ‘takes the cake’

Although some customers have kept their accounts for 30 0r 40 years, according to Shoemaker, when it comes to loyalty, “June takes the cake.” Gregg claims she never even thought about changing banks; she likes the institution.

A gift of interest

As a gift, the bank raised her interest rate to about 5 percent for the next 100 days. That is about 5 times the normal rate.

Sources

MSNBC

Huffington Post

WTHR

Earn good interest on your money with a money market account. (Photo Credit: CC BY-ND/Catherine Hoyle/Wrights Business Research)

If the rate of return on a small savings account were a particle in the natural world, you’d need an electron microscope to see it. For a better rate of return, consider a money market account. While not as liquid as a savings account – you can’t cash it out as quickly – a money market account is a safe investment that you can easily sign up for online.

Money market accounts and money market funds

There are two basic variations when it comes to a money market: the money market account (aka the money market savings account) and the money market fund (aka the money market mutual fund). Money market accounts are products of a bank, and hence such an investment carries the benefit of being FDIC insured. “High-yield savings,” “Internet savings” and “electronic savings” are all terms various banks will use to refer to such accounts. And like a savings account, a money market savings account provides liquidity, although with some limitations not present in a regular savings account.

Money market mutual funds are quality, short-term investments with some liquidity and interest rates that fluctuate daily. While investors have historically had great success with money market funds in terms of safety, there is no FDIC insurance that guarantees investors will get their money back if the issuing bank becomes insolvent.

Research the best money market account or fund for you

Decide what features work best for your financial situation and shop around. Yields will vary greatly from one financial institution to the next. Check Bankrate.com to compare rates. It is important that consumers pay attention to bait-and-switch-style situations in which a bank advertises a high opening rate, only to drop it down later.

Some banks give customers free checks and access to electronic funds transfer (EFT) between a money market fund and checking account. However, the number of monthly transfers allowed will likely be limited.

If you sign up for a money market account through a brokerage, unlimited check writing, an attached debit card and EFT transfers are common features. Any cash surplus between trades and investments performed within a broker money market account are “swept” into a separate money market account that is used to pay for future trades.

Go to your chosen institution’s website

Once you’re on the website for the financial institution of your choice, the procedure to open an account will be spelled out in detail. Print, sign and mail in the required account agreement, as well as the signature card if the option for checks is available. If you have questions, a toll-free number is made available by most issuing banks. Keep in mind that if signing up for a money market account is difficult with a particular bank, it is likely that future transactions involving the account will also be more trouble than they’re worth.

Don’t forget the EFT

If you want the flexibility to be able to instantly transfer money from your money market account or money market mutual fund into your checking account – and the option is available at your bank of choice – make sure to set up the EFT link at sign-up.

Sources

eHow Money

Investopedia

Cathy Pareto, MBA, CFP, on the benefits of money market accounts

Sometimes people think of saving money as a monumental task involving lots of personal sacrifice. This does not have to be the case, however, for those willing to make minor changes, prevent the need for more payday loans, and begin saving money right away. The following are a few very simple tips that everyone can use to grow their savings.

Stop Using Credit Cards

By their very nature, credit cards increase debt. They also are great ways of wasting money on things like interest rates, finance charges and other fees. When these additional charges are avoided, more money is made available for actual saving. Those who make it a hard-fast rule to only purchase items that they can afford to pay for in cash find themselves closer to a debt-free reality and a larger savings account.

Only Spend Paper Money

Each time coins are received as change for purchases, do not spend this money later in the day. Instead, when other purchases are made throughout the day, pay for each one with paper currency and save all change received to be deposited in a piggy bank or a coin jar at the end of the day. People have reported amazing success in saving money in this way and some have even been able to bypass the need for car loans by purchasing vehicles with spare change that they have saved for several years.

Save a Few Dollars Every Day

By developing a habit of putting a few dollars in a jar each and every day, a person can save a lot of money. For example, if a person can develop the discipline of saving just five dollars every day, in a year’s time they can save $1,825. Some people may only choose to save a dollar each day and others may choose to save more, but this is a relatively painless way of saving that everyone can afford to do.

Stop Spending Money on Vices

Most have mentally calculated the money that they could save if they stopped buying a daily latte, a daily pack of cigarettes or lottery tickets every payday. However, those who are really motivated to save money not only put a halt to these vices, but they go an extra mile in actually placing the money that they would have spent on them in a jar or piggy bank and deposit that money into a separate savings account at regular intervals.

Clip Coupons

Coupons are offered online, they are delivered free to most homes, and major manufacturers make them available in the Sunday paper each week. Entire websites are devoted to finding coupons for items used every day and learning how to maximize their value. Some retailers will double the value of a coupon or even accept competitor coupons on certain items. Most people who try using coupons give up after forgetting to use them before they expire. However, this can be avoided by planning specific shopping days, writing out a list of items to be purchased and making a note next to those that a coupon can be applied to.

Anyone Can Save Money

Saving money doesn’t have to be a major inconvenience. By simply disciplining one’s self to set small amounts aside on a regular basis, most are surprised at how quickly these amounts turn into substantial savings. With these tips, anyone can save money and those who are serious about their financial future actually will.

Financial experts today recommend having at least six months of living expenses squirreled away in a savings account to help you cope with an unexpected change in your financial situation. However, if you’re already pinching pennies just to make ends meet, coming up with that much money may seem impossible. It will take time and financial discipline, but you can do it. Consider some of following tips to help get you started.

Coupons, coupons, coupons

For years, coupon-clipping moms were mocked in the media for their penny-pinching ways. Today, though, the media have come flocking back, asking for their money saving tips! You too can take a page from their books and start saving money with the coupons that you find online or in local publications. Just remember the golden rule of coupon clipping – only clip coupons for items that you’ll actually use. Saving $10 on a case of baby food isn’t a great deal if you don’t have any children!

Switch to home brew

You’ve probably heard this one before — trading the Starbucks habit for a home-brewed cup of Joe — but for some reason, it’s a budgetary step that few people are willing to take. Consider it this way, though. A cup of coffee from Starbucks can cost upwards of $4– over $1,000 a year if you drink 5 cups a week. Coffee brewed at home or at the office costs just a fraction of this, which means more money in your pocket.

Take advantage of free events

Just because you’re on a budget doesn’t mean you have to cut all of the fun out of your life. Plenty of museums, colleges, and other organizations offer free events that are open to the public, including everything from art gallery openings to free cake-tastings to book readings. Check your local newspaper or community website to find out more about free events in your area.

Split an entrée

When you go out to eat, opt to share an entrée with your dining companion instead of ordering separate dishes. The portions served in most restaurants these days are ample enough to feed two people comfortably, saving you both money and calories.

Round down at the bank

Some banks offer a service that rounds deposits down to the nearest dollar and re-routes the remaining change into a separate checking account. For example, if you deposit a check for $85.12 into a qualified account, your bank would deposit $85 into your checking account and the remaining $.12 into your savings account. Even if your bank doesn’t offer this service, you can follow this practice yourself by dividing your checks into separate checking and saving amounts.

Right-size your service bills

When was the last time you looked at your monthly cell phone bill? Have you even looked at all since you set up the account? If you haven’t, it’s time to take a peek – you could be overpaying for a plan that includes more minutes than you need. Take a similar critical look at your cable and internet bills. If you’re paying for premium services that you don’t really need, cut them out and redirect the extra money to your savings account.