Saving money is not something that should ever be taken lightly, especially when it comes to planning your future. In fact, one particular tip to being financially savvy and being prepared for anything is by saving at least 10% of your monthly income every month and stashing it in a savings account that you don’t touch in order for it to grow exponentially.
But while putting it away in an account will save you money, there is another way to make that extra saved income earn even more, by investing it in a High-Interest Savings Account, and here’s how.
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More Interest Means More Money
Earning more money doesn’t have to be complicated, but sometimes understanding what kind of bank account you have can be. Most banks offer a normal interest rate that’s usually between 0.01 to 0.03 percent, which really won’t earn you too much extra cash. But if you choose to open a high-interest earning savings account, then you could get a rate of up to 1.80% APY, which is short for Annual Percentage Yield. Easily explained, this would mean that if you had $10,000 in that account, you could earn an additional $180, rather than a lowly $1 for a regular interest rate of 0.01% APY.
High-Interest Savings Accounts Don’t Mean They’re Untouchable
Plain and simple, using high-interest savings accounts are just a smarter choice when wanting to earn more money. Unlike other types of accounts – like the popular Certificate of Deposit Accounts, otherwise known as CDs – that charge you for early withdrawals before the account actually matures, you won’t get charged if you decide to take out cash from your high-interest savings account. Not only do most banks allow you to make 6 separate withdrawals or money transfers from this type of account every month, but if you happen to make it an online one, you’ll hardly ever have to go to your actual bank. Online accounts mean that most of your bank transactions can be done electronically, allowing you to do your banking from either your laptop or your mobile phone.
There Don’t Have To Be Added Fees
Many other types of accounts, including ATM accounts and checking accounts, sometimes require users to pay certain bank fees. Some fees are for withdrawals from different bank ATMs, others charge when an account goes below minimum balance, while others are for withdrawing over the allowed monthly transaction number. If you want to earn more, be sure to do your research and see which banks actually offer high-interest earning savings accounts that don’t charge unnecessary fees.
Transfer Cash When Needed
Oftentimes, people use a checking account to pay for their bills and other such necessities, but this doesn’t mean that you should use it as a savings account as well. Most checking accounts offer very low interest rates, which means that you won’t be earning any real extra cash from those types of accounts. A great tip is to keep an amount that covers expenses for about one to two months only in your checking account while keeping the rest in a high-interest savings account and just transferring money into the checking account when needed. That way the bulk of your money is still earning at a higher rate than usual.
It’s A Quick And Easy Move!
If you’re ready to make the switch from a regular savings account to a high-interest savings one, know that the move can be both quick and easy! After you’ve done your research and have decided on which bank best suits your needs, go ahead and begin the speedy process. You might find that you don’t even need to head to your chosen bank to do it. Simply log on to the bank’s website and find out what the necessary requirements are, then once you have everything ready, begin the quick and easy process. Just knowing that you will be earning more while your money sits in a high-interest savings account should be enough to get moving!
