Everyone wants more money, but did you know there could be an easy way starting today. If you have money with a national bank, then you’re most likely stuck with a low interest rates of just 0.01 percent APY, per CNN1 report. You should be earning more, and many Americans can if they know where to look.
What’s Going On w/ Interest Rates
For once this time, the government might be on your side. Now that we’re out of the recession, the Fed has increased the federal fund rates already for the third time this year to 2.25%2 .
So what exactly does that mean for the everyday American? Well, this increase could mean more online banks offering interest rates well above 2%. In simple terms, this is happening because the government is making it more expensive to lend people money. When it’s more expensive to borrow, the banks have to offer better rates to consumers to get their deposits. Banks could already be in a fierce war to earn your business, so the government can only be good news for those who have extra cash to deposit into a bank.
High-Interest Savings Accounts Give You More Money
If you open a savings account with an interest rate of just 0.01 percent, it’ll take much longer to earn additional money on your savings. For example, if you open a high-interest savings account, you can earn an interest rate of 1.80 percent APY – an interest rate that’s 180 times higher.
If you deposit $10,000 in a traditional savings account that pays 0.01 percent APY, you’ll earn just $1 after a year. By contrast, that same $10,000 deposited in an account with 1.80 percent interest will earn $180 in one year.
Make the Switch Today
Ready to open a high-yield savings account? There are plenty of options: high-interest savings accounts are offered by many different banks, investment companies, and financial providers. Make sure to compare interest rates so you’re getting the best rate available.
You should start by researching the different offers available. There are numerous options available that pay more than 0.01 percent interest. Some of these accounts require no or very minimal opening deposits, but some may require you to keep a high minimum balance. After you’ve researched the different accounts and chosen one that meets your needs the best, you can open your account online by going to the online bank’s website.
If you’re trying to increase your savings, choose a high-yield savings account instead of a traditional savings account. These accounts are simple to open and pay as much as 180 times what the large banks pay in interest on a typical savings account. When you open a high-interest savings account, you’ll be able to meet your savings goals much faster while still enjoying easy access to your money.
Like anything, it’s always a good idea to be aware of the latest research. We recommend comparing at least 3 or 4 options before making a final decision. Doing a search online is typically the quickest, most thorough way to discover all the pros and cons you need to keep in mind.