I just took a finance class and learned about the importance of earning the most interest you can. Look at your bank or find one near you that has variety in the services provided. My credit union has money market account a with 4x the interest payed out compared to their savings account. They also have dedicated savings accounts which are like certificates of deposit that you can add to with a minimum requirement of $10 a month. Punchline look into the services at your bank to get the most from it and shop around for the best bank. The saying "Those who understand interest earn it those who don't pay it" feels more real to me now.
"Those who understand interest earn it those who don't pay it" feels more real to me now.
Great saying and way to look at it.
I just took a finance class and learned about the importance of earning the most interest you can. Look at your bank or find one near you that has variety in the services provided. My credit union has money market account a with 4x the interest payed out compared to their savings account. They also have dedicated savings accounts which are like certificates of deposit that you can add to with a minimum requirement of $10 a month. Punchline look into the services at your bank to get the most from it and shop around for the best bank. The saying "Those who understand interest earn it those who don't pay it" feels more real to me now.
I find that online banks have the best interest. I currently utilize 3 online accounts. I'm happy!
I thought that was a good way to save as well. Turns out that doesn't work so well for me . I need to find a bank that doesn't have surprise fees after you sign up. What online banks do you have?
I thought that was a good way to save as well. Turns out that doesn't work so well for me . I need to find a bank that doesn't have surprise fees after you sign up. What online banks do you have?
I use Ally Bank for my online savings account, and they're great
In the current low rate environment, what are some good options for earning interest on cash savings?
I tried Acorns since I heard a lot about it but didn’t seem to do anything. Would love to hear your suggestion. I would love to take some of the saving and set it aside in a high interest yielding option and forget about it but unsure what is good. I don’t like investing in stocks and stuff that fluctuate, feels like gambling.
Online banks have pretty much been wrecked by the pandemic. The Federal Reserve keeps dropping the rates. However, still better than a physical bank.
@ Gracy D., while it may seem that high-interest yielding options are safe, the spending power of that money is likely eroding over time due to inflation. When it comes to investing, there are a variety of options with different degrees of risk. You'll likely need to balance your investing goals with the amount of risk you're willing to assume to achieve those goals.
Online banks have pretty much been wrecked by the pandemic. The Federal Reserve keeps dropping the rates. However, still better than I physical bank.
It's tough to find decent rates on liquid savings. Though somewhat less liquid, maybe we could get higher rates through building a CD ladder.
@Aaron G. It used to be that way. But lately not so much. Ally currently has savings accounts at 1.10% and 12-month CDs at 1.0%. The only thing they have higher than their savings account rate is a 5-year CD at a whopping 1.15%. I'm not sure if that means they forecast lower rates going forward or they think consumers expect them.
@Aaron G. It used to be that way. But lately not so much. Ally currently has savings accounts at 1.10% and 12-month CDs at 1.0%. The only thing they have higher than their savings account rate is a 5-year CD at a whopping 1.15%. I'm not sure if that means they forecast lower rates going forward or they think consumers expect them.
Agree totally that the opportunities are essentially nonexistent. I've been deploying my cash to take advantage of checking and savings account bonuses just to bolster yields.
Are there any specific banks you recommend with high interest?
In the current rate environment, it's been difficult to find good rates for high-yield savings accounts, which provide a combination of liquidity and "decent" interest. The small differences in interest rates also make the act of hunting for the highest possible rate a fool's errand, particularly when the promotional rates are likely to fall back to the rest of the pack. Top savings account interest rates are probably around 1-1.25%, which can be had at banks like Citi, Marcus, Discover, Capital One, and Ally. Again, I'd caution holding out for the highest possible rate and go with a bank with a rate in this range that you're familiar with and comfortable using. It's likely more important that you're able to meet the account requirements and avoid periodic fees.
If you are willing fulfill monthly debit card purchase requirements, look for a Kasasa reward checking account with an attached Kasasa savings. Both types of accounts are offering above 2% for your deposits.
I use multiple RCAs(reward checking accounts), including a couple Kasasa accounts, to earn a decent interest rate. You can check the rates and identify banks that offer Kasasa RCAs in your area by searching at a website called simply “deposit accounts.” Hopefully, I don’t get kicked off this website for mentioning another site, but it is a good one to check whether you are receiving a competitive rate from your bank. I wasn’t aware of the site until about a year ago and I consider myself pretty knowledgeable on the subject.
If you are willing fulfill monthly debit card purchase requirements, look for a Kasasa reward checking account with an attached Kasasa savings. Both types of accounts are offering above 2% for your deposits.
I've seen Kasasa rewards offered by my credit union, but I don't use a debit card. I'm also generally not a fan of having to fulfill specific tasks for rewards checking accounts, particularly since I don't perform those tasks already on a regular basis. RCAs can be effective, but they're just not for me.
If you are willing fulfill monthly debit card purchase requirements, look for a Kasasa reward checking account with an attached Kasasa savings. Both types of accounts are offering above 2% for your deposits.
I've seen Kasasa rewards offered by my credit union, but I don't use a debit card. I'm also generally not a fan of having to fulfill specific tasks for rewards checking accounts, particularly since I don't perform those tasks already on a regular basis. RCAs can be effective, but they're just not for me.
To be honest, I don’t really use DCs either to make purchases and they generally don’t even leave my sock drawer. However, I use them with the cash app to load and unload funds to accomplish the necessary transactions for the higher interest rates each month. It is a bit like earning the points to enter scratch and save and I win at the end of each month.
If you are willing fulfill monthly debit card purchase requirements, look for a Kasasa reward checking account with an attached Kasasa savings. Both types of accounts are offering above 2% for your deposits.
I've seen Kasasa rewards offered by my credit union, but I don't use a debit card. I'm also generally not a fan of having to fulfill specific tasks for rewards checking accounts, particularly since I don't perform those tasks already on a regular basis. RCAs can be effective, but they're just not for me.
To be honest, I don’t really use DCs either to make purchases and they generally don’t even leave my sock drawer. However, I use them with the cash app to load and unload funds to accomplish the necessary transactions for the higher interest rates each month. It is a bit like earning the points to enter scratch and save and I win at the end of each month.
Thanks for clarifying, @Kimberly K. I checked out the account options at my CU and saw that the Free Kasasa Cash and Kasasa Saver accounts are offering 1.00% APY if I meet the qualifications each month. I can get that rate without having to meet qualifications elsewhere. What am I missing?
There are Kasasa accounts currently open to people nationwide that earn 3%, like Bank of Denver on up to $25k, and you can have a linked Kasasa Saver account earning up to 2% on $50k. (If your savings are smaller, you can do better at DCU.org with a non-Kasasa savings at 6.17% on up to $1k.) You just have to search around for what works for best for your circumstances. Search at the deposit accounts website and/or doctor of credit website.
Doctor of Credit is an awesome website! I follow his bank signup bonus page religiously.
There are Kasasa accounts currently open to people nationwide that earn 3%, like Bank of Denver on up to $25k, and you can have a linked Kasasa Saver account earning up to 2% on $50k. (If your savings are smaller, you can do better at DCU.org with a non-Kasasa savings at 6.17% on up to $1k.) You just have to search around for what works for best for your circumstances. Search at the deposit accounts website and/or doctor of credit website.
Thanks for the tip, Dragan P. I'm regularly on Doctor of Credit, but I'm there primarily for bank account bonuses.
Aaron-I am on DoC for bank bonuses too, but also take advantage of the high interest checking account that I have learned about there.
Agreed! Compounding interesting in savings accoun can earn you savings passively.
