Company Bonus
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| Fri, 01-02-2009 - 2:38pm |
This is the first year my Husband will be able to participate in the company bonus program. It's not really a bonus because it's his money...well, here's how it works. Each year they get a certain amount of vacation days. Let's say he has to work on 4th of july. He gets vacation pay that day, which is like getting an extra days pay. He can choose to take that money 2 ways. One...he can have the company keep it and at the end of the year, they get one big check with all their vacation pay as well as any sick days they would like to cash in. This could potentially be way over a thousand dollar check. Many of the employees choose to do this because at the end of November they get a large check right before Christmas. Two...he can get paid the extra in his check the next week and do with it what he wants.
This is what I was thinking...what a horrible deal! I'm not going to let the company hold on to my husbands hard earned vacation pay and earn interest on it somewhere. Bad deal!!! So, I've decided that I can make my own Christmas bonus. We're going to take the vacation pay right away and transfer that extra days pay into a savings account. At the end of the year, we'll have around 9 days of vacation pay in our own savings account to do with as we please. Then he can cash in his sick days for even more money. I could just use the extra money I guess to pay bills as the vacation pay comes in, but I think that feeling of getting a lump sum at the end of the year, even if we do nothing but keep it in savings is a nice feeling. He'll feel better when all his buddies at work are getting their big Christmas checks and I can hand him one as well, only with interest earned!
Also, anyone know of a higher earning savings account that doesn't need a high balance to start?

I don't know if this is high or not but I have my savings in www.ingdirect.com it is 2.5% - it used to be 4.5% until the economy tanked. I like the idea of an online savings account because it keeps the money accessible (within 24 hours) but it keeps it out of my day to day view so I am not in anyway tempted to spend it!
Good luck.