Kiplinger's on Parking Savings
Kiplinger's writes "4 High-Yield Spots to Park Your Savings." They ask, "How much is your savings account earning? It could be about $1 per year on an account worth $10,000. If so, take a moment to check rates for online options instead. You might be pleasantly surprised.... Now, while there is a lot of debate on how much a person should save, there shouldn't be as much deliberation on where to stash your savings. But you'd be surprised: Many smart savers are cheating themselves because they aren't putting their money where they should." The advisor-written piece explains, "Here is an easy way to maximize your return on your savings.... Most of the big banks (see Bank of America, Citibank, Chase) pay a paltry return, usually around 0.01%. For someone who has $10,000 in savings, that's a return of ONE DOLLAR per year. I'm guessing that 0.01% return doesn't even cover the cost of keeping your account open, let alone help offset inflation. The good news is you have other solutions for saving your money." The author cites "Online High-Yield Savings Accounts," writing, "In addition to the convenience of digital banking, the most appreciated benefit comes in the form of higher interest rates. The rates of a high-yield savings account can be as high as 1.55%. This may not sound like much, but when you consider that $1 you were earning per year on a $10,000 savings account, a rate of 1.55% bumps your yearly savings to $155. Remember, these online banks offer the same FDIC protections as your traditional brick-and-mortar big banks." They mention Ally Bank, Discover Bank, Synchrony Bank and Marcus by Goldman Sachs, adding, "Given these options, consider switching to a financial institution that can offer you the better yield when you park your money with them. After all, having readily-available cash is a good idea for just about anyone. You might as well let your good financial stewardship be rewarded."
