Save More Money With a High-Yield Savings Account
When I was a college student I rarely had any extra money, but when I did I was responsible and saved it. That extra money went into my savings account and sat there, never doing anything until one day I closed the account when I moved away. The point of this story is that there is a better way. Instead of putting away savings that won’t work for you, put that same money into a high-yield savings account that will work for you! There are many high-interest savings accounts out there, just take your pick.
Maybe the most popular high-yield account is from ING Direct. ING offers no fees, an automatic savings plan, easy to use web interface, no minimum to open and an interest rate of 3.40%. It’s true that they true that they’re usually the lowest of the rates offered compared with other banks, but they offer easy access, good customer service and a great web interface which gives an easy way to access your money anytime. But if you want the highest rate available try Countrywide Bank. Included in their high-yield accounts are free bank to bank transfers, interest that is compounded daily and unlimited deposits with an interest rate of 4.75%. On the down side they require a minimum of $1000 to open an account.
Another good choice is E*Trade which offers 4.40% APY, no fees and an automatic savings plan. Although it may not be a good choice to use E*Trade for your everyday banking, the high-yield savings account is worth it. Plus the ability to open trading accounts and view your money in one place is a bonus.
Citibank Direct, offers a rate of 4.00% APY, no fees and no minimum. But to earn the 4.00% rate, you must meet certain bill-payment requirements, otherwise your rate will be 3.50%.
There are many more options out there, all with their own positives and negatives. If you would like to start a high-yield account, do the research. Check out the article Which Online High-Yield Savings Account is Best? on Get Rich Slowly to get more info on all the high-yield accounts out there including all the current rates. And if you are someone who uses one (or more) of these banks, please give your feedback! I’d love to hear first-person feedback of how these accounts stack up against each other.
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I would put the money into trading with E*Trade, buy some stocks and leave them, there is a $20 fee for every stock trade so keep that in mind, it’s better for you because the growth of your money when it’s sitting on an interest rate, will be very low compared to the alternative investment, especially these days when the markets are going down and there is an opportunity to invest in low stock rates with the assumption that they will go up some day, this involves a research of course.