Start Making Your Money Work For You – Open a High-Yield Savings Account

How much interest is your money in your bank account earning?  Do you know the percentage?  Odds are its some fraction of a percent that isn’t worth recognizing or remembering.  This is where economists freak out, because many of us aren’t acting as rational entities and aren’t maximizing our wealth/earning potential via the resources that are abundently avaialable to us.

For example, about a year ago, I opened up my first savings account since I was in middle school.  I called up my bank, which I had been with for years and told them I wanted to open a savings account.  They said they had a great account for me, called a “relationship savings account”, because I had a checking account with the bank.  They ran through all the benefits and the Annual Percentage Yield of .05% .  I said, “umm, ok” and opened the account.  This is how traditional banking is done.  However, why be traditional when we are in the age of computers, the internet and online banking!

When I started to get serious about my money, I started to read all sorts of articles discussing high-yield savings accounts (accounts that were earning as much as 2.5% at the time).  2.5% ! That is a 50 times higher return than the “great account” my local bank set me up with.  I started to shop for a new bank that day.  The catch here is that the majority of banks with high-yield accounts are online banks.  There is some trepidation towards putting money into an online bank.  Many people feel their money is disappearing because it has become “digital”.  Well, for the people that are concerned about such things, they should know that over 90% of the american money supply is digital money.  Also, the big online banks are FDIC insured, which means your money is insured by the government up to $250,000.  These online banks can offer such great rates because they don’t have the large overhead that comes with having local branches, allowing them to give extra benefits to their customers.

So, it would seem rational to make a transition from your brick and mortar bank to an online bank for your savings account.  The next question is, which one or where do I find the right bank for me?  Well, I have an assignment for you over the weekend.  Go and take a look at this fantastic post written at Get Rich Slowly this week.  JD has done all the grunt work for you, all that is left is to take your pick and open an account.

Moving money into a high-yield account is a great start to having your money work for you.  If you don’t have much money in your savings account at the moment, don’t worry.  Even a few extra dollars a year is likely better than what you would have been getting at your brick and mortar bank.  The idea is to build wealth, and once you have enough capital, you will see that the returns from these accounts can be substantial.

Check back here on Monday to see which accounts I have set up and why.

Have a great weekend.

1,508 Responses to Start Making Your Money Work For You – Open a High-Yield Savings Account
  1. Homeserve
    November 12, 2018 | 9:46 pm

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  2. Home Contractors
    November 12, 2018 | 10:24 pm

    Hello. fantastic job. I did not expect this. This is a excellent story. Thanks!

  3. Hvac Service
    November 13, 2018 | 1:29 am

    of course like your website but you have to check the spelling on quite a few of your posts. Several of them are rife with spelling problems and I to find it very troublesome to tell the truth on the other hand I will definitely come back again.

  4. business service
    November 13, 2018 | 3:00 am

    hello!,I like your writing very so much! share we be in contact more about your post on AOL? I need a specialist on this area to solve my problem. Maybe that’s you! Taking a look ahead to look you.

  5. Health & Fitness
    November 13, 2018 | 7:38 pm

    hello!,I love your writing so so much! percentage we keep up a correspondence more approximately your post on AOL? I require a specialist on this house to unravel my problem. May be that is you! Taking a look forward to see you.

  6. Remodel Kitchen
    November 14, 2018 | 12:21 am

    Wow! This could be one particular of the most beneficial blogs We’ve ever arrive across on this subject. Basically Fantastic. I’m also an expert in this topic therefore I can understand your hard work.

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Start Making Your Money Work For You – Open a High-Yield Savings Account

How much interest is your money in your bank account earning?  Do you know the percentage?  Odds are its some fraction of a percent that isn’t worth recognizing or remembering.  This is where economists freak out, because many of us aren’t acting as rational entities and aren’t maximizing our wealth/earning potential via the resources that are abundently avaialable to us.

For example, about a year ago, I opened up my first savings account since I was in middle school.  I called up my bank, which I had been with for years and told them I wanted to open a savings account.  They said they had a great account for me, called a “relationship savings account”, because I had a checking account with the bank.  They ran through all the benefits and the Annual Percentage Yield of .05% .  I said, “umm, ok” and opened the account.  This is how traditional banking is done.  However, why be traditional when we are in the age of computers, the internet and online banking!

When I started to get serious about my money, I started to read all sorts of articles discussing high-yield savings accounts (accounts that were earning as much as 2.5% at the time).  2.5% ! That is a 50 times higher return than the “great account” my local bank set me up with.  I started to shop for a new bank that day.  The catch here is that the majority of banks with high-yield accounts are online banks.  There is some trepidation towards putting money into an online bank.  Many people feel their money is disappearing because it has become “digital”.  Well, for the people that are concerned about such things, they should know that over 90% of the american money supply is digital money.  Also, the big online banks are FDIC insured, which means your money is insured by the government up to $250,000.  These online banks can offer such great rates because they don’t have the large overhead that comes with having local branches, allowing them to give extra benefits to their customers.

So, it would seem rational to make a transition from your brick and mortar bank to an online bank for your savings account.  The next question is, which one or where do I find the right bank for me?  Well, I have an assignment for you over the weekend.  Go and take a look at this fantastic post written at Get Rich Slowly this week.  JD has done all the grunt work for you, all that is left is to take your pick and open an account.

Moving money into a high-yield account is a great start to having your money work for you.  If you don’t have much money in your savings account at the moment, don’t worry.  Even a few extra dollars a year is likely better than what you would have been getting at your brick and mortar bank.  The idea is to build wealth, and once you have enough capital, you will see that the returns from these accounts can be substantial.

Check back here on Monday to see which accounts I have set up and why.

Have a great weekend.

1,508 Responses to Start Making Your Money Work For You – Open a High-Yield Savings Account
  1. Homeserve
    November 12, 2018 | 9:46 pm

    My spouse and i got quite delighted when Jordan could round up his basic research because of the ideas he gained while using the weblog. It’s not at all simplistic to simply choose to be freely giving solutions which other folks could have been trying to sell. And we discover we have got you to give thanks to for this. The illustrations you made, the simple blog navigation, the relationships you help to foster – it’s all extraordinary, and it’s assisting our son in addition to the family do think that topic is fun, which is really important. Thank you for everything!

  2. Home Contractors
    November 12, 2018 | 10:24 pm

    Hello. fantastic job. I did not expect this. This is a excellent story. Thanks!

  3. Hvac Service
    November 13, 2018 | 1:29 am

    of course like your website but you have to check the spelling on quite a few of your posts. Several of them are rife with spelling problems and I to find it very troublesome to tell the truth on the other hand I will definitely come back again.

  4. business service
    November 13, 2018 | 3:00 am

    hello!,I like your writing very so much! share we be in contact more about your post on AOL? I need a specialist on this area to solve my problem. Maybe that’s you! Taking a look ahead to look you.

  5. Health & Fitness
    November 13, 2018 | 7:38 pm

    hello!,I love your writing so so much! percentage we keep up a correspondence more approximately your post on AOL? I require a specialist on this house to unravel my problem. May be that is you! Taking a look forward to see you.

  6. Remodel Kitchen
    November 14, 2018 | 12:21 am

    Wow! This could be one particular of the most beneficial blogs We’ve ever arrive across on this subject. Basically Fantastic. I’m also an expert in this topic therefore I can understand your hard work.

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  1. Manifestation Magic
  2. ivf specialist doctor in delhi
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Trackback URL http://mynextbuck.com/start-making-your-money-work-for-you-%e2%80%93-open-a-high-yield-savings-account/trackback/