Why You Are Saving Wrong and How To Do It Right

Hi Readers, today I will talk to you about saving accounts. Most of America is saving wrong and it is a straightforward fix; I will show you how to save better. The real problem with savings accounts is that many people can not find or get the right savings account. In this article, I will be providing a list of the 5 best-paying savings accounts. As you may know, savings accounts allow you to make money by depositing it in a bank. You can earn interest on money saved, which is deposited into your account each month. The money you earn is a percentage of your money saved, called an interest rate. This number is an annual percentage and determines the percentage that the bank pays you for keeping your money deposited with them and it is paid annually. This amount is your money saved times your interest rate divided by 12; That is your monthly interest amount. But there are other catches; some accounts have a fee and others have your average daily balance instead of the amount at the end of the month.

But you may be thinking, my rate is 0.01% APY (Annual Percentage Yield). It is so low, there is no way to make a good amount of money with savings. You may have thought you can only make a couple of bucks a year with savings and that there are better ways to use it, like investing. The secret of the world of savings accounts is effortless. There are three types of savings accounts: Checking Savings, Regular Savings, and High-Yield Savings. I will inform you about these below.

Checking Savings is a type of savings account that is also a checking account. It comes with a debit card like a normal checking account. But the interest is usually about 0.001%-0.01% APY. This amount of interest is incredibly low, far below the national average APY of 0.60% APY. There are far better savings accounts to use instead of this. Have a checking account and a savings account, not both accounts in just one account. This seems convenient, but upon further inspection, it is pretty terrible and usually has very bad interest rates, too.

A regular savings account Is probably what you have. It is a savings account at a bank that generally pays 0.05%- 1.75%. For example, TD Simple Savings pays about 0.01% APY. There are so many of these savings accounts around, and they are not very good, but they are better than Checking Savings accounts. These accounts are what make up most of the national average: 0.60% APY.

The best kind of saving accounts are called high-yield saving accounts. These savings accounts pay the best out of all of them. These accounts usually pay about 2%-4.9% and are usually free. If you can not find a free, high-yield savings account, I have 5 high-yield savings accounts that are all fee-free and pay far above the national average. You might be wondering, why doesn’t everybody do this? Well, a lot of people in the US simply do not know about it. That is why below I will give you the best high-yield savings accounts to use.

I have made you a free list of the best-paying savings accounts and I will include them in this article. Although, depending on where you live you may not be eligible for these accounts or you may get a lower APY. Below are the best-paying savings accounts:

These savings accounts don’t have a fee or a minimum balance requirement, except for the CIT bank savings account where you must have $5,000 in order to get a higher APY. They are all outstanding and recommended by bankrate.com. I use Capital One Savings, and it works well for me as a savings account. The account is very easy to open and only takes five minutes. If you have a kid, you can have a kid savings account with an incredible 2.50% APY.

Anyway, thank you so much for reading my article. Thanks so much for subscribing and I am grateful that you are reading this. I hope you enjoyed this article and if you could fill out this survey, I would be grateful.

Jacob Gans

Friday Finance