Online banks
Is a savings account with an online bank a safe place to put my mom’s money from the sale of her house? She is now in an assisted living home and needs access to the money monthly to pay for her care.
Terry Says
Yes, it’s safe — IF it is an FDIC insured account. But WHY do that to earn a few extra pennies in interest? Likely you can get a similar rate at your home-town bank. Or if it is a substantial amount of money, buy U.S. Treasury bills in 3-month increments, with the interest going into a money market account at your local bank. Read this article on how to buy Treasury Bills.
And one more, even more important, thing: How will this account be titled? If you’re the only child, maybe it should be in joint name, so that you can access it if she is unable to do so. But if there’s more of an estate involved, or if there are several siblings, you should consider consulting an attorney to create a Revocable Living Trust, with your mom as trustee– and you as successor trustee if she cannot act. This is the time to do that kind of financial planning.
If you need to find an estate planning attorney, go to www.Search-Attorneys.com, the website of the estate planning bar.
