Back in the day, banks would pay out up to 5% APR on all savings accounts. Today some people are happy just to save money with a .08% APR return, because they feel that is the best they can do. Well, I know a few online banks that pay at least 1.0%!
I use 3 online banks for savings and emergencies. GE Capital became GS Bank and pays 1.05% APR. That is a great rate for an interest earning saving account. A bit of advice is to avoid CDs no matter how tempting. You're locked in and there are penalties for early withdraw, not only from the bank, but on your federal returns. Keep that in mind.
Saving money isn't always easy, but being an ant instead of a grasshopper will prepare you for anything that comes your way. Seeing a possible emergency coming may help you put extra money aside. This may very well be the theme of a frugal penny pincher. Smile, you're on Candid Camera! Google CC.
If you want just a little bit more than GS Bank then you should check out Barclays. It not only pays 1.05% APY, but rewards you with extra credit for not withdrawing and depositing.
So is there possibly a better rate to help you save and earn interest? How does 1.10% sound? Check out Salem Five Direct. The .25% APY on the checking account!
In the GS Bank, I deposit as a weekly overdraft protection. If my paycheck doesn't cover expenses at some point, I withdraw from this account.
The Barclays is a long term savings for retirement account that will yield a high interest return. The Salem Five is for an emergency fund. Some would say, "Wouldn't you want Barclays as an emergency fund?" An emergency fund might be short term, but more than likely will be longer than projected. Eventually, a non spent SalemFive may earn more than a Barclays!
Now if you are saving it implies that you are not living paycheck to paycheck. This really will not make any sense to those who do. Saving is a form of investing that has a guaranteed return.
As always, be sure to read all agreements before signing on. Is there a minimum deposit on high interest accounts? What is my rate? Read and understand what you are getting into for the most part!
