Tips for Getting the Most From Your Savings Account

Do you feel like you’re saving your money with a financial institution in vain? Does it seem like you’ve had your money there forever but you’ve earned very little on your investment?

Even though banks pay very little interest, there are some simple strategies you can use to get the most out of your savings account.

Easy Ways to Improve Returns

If you prefer regular savings accounts to more complex investment arrangements, there are a few things you can do to ensure you make the most returns on your money:

      1. Choose online savings. Online savings accounts are fast becoming the popular choice of people who want to keep it simple where their savings are concerned, yet get good returns.
          • Online savings accounts offer the option for you to earn good interest rates on your deposit. These accounts would certainly take care of that concern!
          • You earn your interest safely. As long as your account has $250,000 or less, it’s automatically insured by the FDIC. This means that you won’t be negatively impacted by any financial crisis that could affect monies saved.
      2. Look for higher interest rates. Believe it or not, not all savings accounts are the same. There are actually some that offer better interest rates for depositors and these are the ones to consider if you want to see your money working for you. At the end of the day, your mission is to be able to earn money on your savings, so why not earn all you can?
          • The more you save, the greater the impact of a higher interest rate – even if it’s only slightly higher. As your savings grow over time, the difference could be significant.

      3. Look for accounts with high opening bonuses. Some savings accounts offer high bonuses once you open a new account. These accounts give you a good head start where your savings are concerned and can end up working for you, especially if you leave your money to grow.

      4. Know when interest is calculated. If you’re able to study the pattern of your savings account, you should be able to determine at what point during each month interest is calculated on your savings.
          • A trick to ensuring you collect higher interest each month is to ensure your balance is as high as possible right before interest is calculated. That way, you’ll get the satisfaction of seeing higher interest amounts in your savings account.

Take Your Savings One Step Further

If you have a bit of an adventurous streak, you could consider those savings accounts that are fixed term and offer higher interest rates. These include viable options like certificates of deposit and money market accounts. Of course, there is more risk involved, but nothing that a little focus and research can’t overcome!

Having a fixed term savings account can be challenging, especially if there is an emergency need for the money. However, if you’re able to hold out until the end of the term, then you’ll reap better rewards in more interest earned.

Fixed term savings options like certificates of deposit guarantee higher interest rates the longer you save your money untouched. That might be the option for you if you’re not getting what you feel you deserve from your existing savings arrangement.

It’s frustrating to save with a financial institution for your entire life without seeing positive returns from it in a reasonable timeframe. Put a little thought into the process as well as the options available so you can find the most practical and attainable way to earn on your savings.

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