When it comes to saving, you want to get the biggest bang for your buck, which is why everyone wants to know how to find the best high-interest savings account available. Generally speaking, you will find the best rates with online banks. Why? Simple, since the bank is online, it can have customers from virtually anywhere, as opposed to your local bank, which will only ever be able to get a certain number of customers. Another reason is that the overhead is considerably less than a traditional ‘brick and mortar location with an online bank. The savings can be passed on as higher interest rates.
High-Interest Rate Accounts
While you will not get rich off of a savings account, it’s still a good idea to get in the habit of having a nest egg. If we have learned anything from the current economic downturn, it should be to save more, use credit less, and learn to live within our means since we never know when the bottom might drop out. Many people would not be struggling right now if they did not have such high debt about their savings. Even if you lose your job, you will be able to get by longer if you have savings to fall back on.
It is also a great way for you to be a good role model for your kids. Teach them from an early age to save a little from each paycheck they get. Teaching your kids to be financially responsible is one of the best gifts you can ever give them. Too many people nowadays do not know how to use their money responsibly.
Before signing on the dotted line and opening an account, make sure you carefully read and understand all the fine print. Many banks will require a minimum deposit. Generally, the higher the deposit, the higher the interest rate you will earn.
Also, make sure to check if there is a limit to the number of withdrawals you can make every month. Many banks will only offer a limited number of free withdrawals and then charge a fee for everyone after that amount.
Will you have to maintain a minimum balance? What will happen if your balance ever falls below that point?
An online bank I recommend and use is Marcus by Goldman Sach’s, and it is currently paying 0.60%, which s down from about 2.0% it was paying at the start of the year.
Is the bank FDIC insured?
How easy is the bank’s website to navigate? The website is going to be the primary method for dealing with your bank, so you want to make sure it’s easy to use and that you can easily find everything you need…when you need it.
And last but not least, how readily available is their customer service? If you ever have a question or a problem, will you have an easy time connecting with a real live human to answer your question?
There are many places where you can find a high-interest savings account, most of which will probably be online. Just take a little time, make sure you understand what each bank has to offer before you open your account, and try to put a little bit away each time you get paid. You will be surprised at how quickly it can add up.
Alternative
An alternative to high-interest savings is Worthy Bonds. These are bonds secured by the collateral of small and medium-sized business and registered with the SEC as a security. The current Worthy offering the bond is on-demand, meaning that there is no maturity date, and they pay a compounding 5% annually in interest payments. If you are interested in these bonds, please visit the following link, and if you open an account and make a bond purchase, we will both receive a $10 bond. And that is another reason I like these bonds is the low purchase price of $10. To take advantage of this, visit https://worthybonds.com/?r=Fldji.
If you have any questions, please contact me directly or reach out to a good fee-only Registered Financial Consultant for more information.