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Summary: We have a difference of opinion on what to do with our spare cash.

Stakes: Agree to listen to some outside opinions.

— "Stakes" are what the loser of the case owes the winner (e.g. "Dinner and a movie," "two kicks to the groin," etc.).

Plaintiff
Files
Case

Defendant
Appears
In Court

Plaintiff
Enters
Arguments

Defendant
Enters
Arguments

The Jury
Votes

The Verdict
Is Delivered

Username: CrashB

Age: 39

City: Los Angeles

Sex: male

Status: Citizen

an Instant Jury virgin

Username: littlemrs

Age: 44

City: Los Angeles

Sex: female

Status: Citizen

an Instant Jury virgin

Voting Results:
CrashB (62.5%)
littlemrs (37.5%)

Tell Your Friends About this Case!

Plaintiff Arguments [Mar 6, 2010]

We are getting our tax returns back in a day now and its a substantial amount of money. My theory is that we should pay down our home equity line while it still has a low interest rate (this could go up later.) My wife thinks that we should just put the cash into a savings account. My problem with this is that savings accounts are offering around 1%. Thats only slightly better than keeping a wad of cash under the mattress!

I think the money gets stretched the furthest by paying down a loan with interest rather than saving with little to gain.

Defendant Arguments [Mar 6, 2010]

I think paying down the equity line isnt the worst idea but I dont think the interest rate is that bad so its affordable as is. I know that we could pay the equity line and then always withdraw the money but we are afraid that the line will be frozen due to declining market value on our property. In that case, the cash is lost.

If we put the money in savings, we have a nice little cushion in the case we cannot access the EQ line. We can look for other investment opps or just sit on it for a rainy day.

PS- We know we can split it but we need to look at it from an all or nothing perspective.

Jurors:	Mensa... jimlo... graham ajdm326 runsw... blaze... mermo... Centaur alf lawfull tanya... emarilyn catch22 mjew kamel ally Mayie Cleo piano... Hooks mingo TanAnn skibert davel...

Message Board

		ajdm326 wrote:[Mar 7, 2010]
We have the same decision to make, only instead of a savings act., would a higher interest 6 month or 1 year cd be better ?

		CrashB wrote:[Mar 7, 2010]
The problem with the cd's is that the interest rate is only slightly higher than a savings account which is still less than 2%. Why lock up your cash for 6-12 months to receive little interest and not be able to withdraw it when you can just dump it in a savings account and withdraw whenever you want? A $1000 cd at 1.5% is $15 per month but you pay a penalty if you take it out. For 1.2% a month, you can put it in a savings account and take it whenever you want. Net loss, $3 per month. I will pay that for the flexibility.