Hello, everyone. I’m sure you’ve heard of high yield savings accounts before. Do you know what they are and how actually to find one? If you’ve been asking yourself these questions, then I have the answers that you have been looking for.
What is a high yield savings account?
A high yield savings account is a deposit account made available through a brick and mortar or online bank. It pays a higher interest rate than a traditional saving account.
Many people choose to look online when they are considering a high-yield savings account. Bankrate is a great place to search online. On this site, you can research various online banks and compare the interest rates. It makes locating the best rate quick and easy to do. This should be a step that you take seriously. A small difference in the rate of interest that you earn can make a difference in the amount of money your cash will earn for you over a period of time. A small boost in the interest rates can dramatically increase the amount of money that you will make.
There are other things that you will want to consider when looking for a high yield interest account. One thing to consider is whether or not the bank is FDIC insured. You may not know it, but most online banks are insured. If you happen to find one that is not secured, keep searching. Having an account that is FDIC insured will add more security to your money.
What is the minimum?
Something else that you should consider is the minimum amount of money that you will need to open the account. Some banks let you start with a small deposit, while others can be in the hundreds. The higher the interest rate, the higher the deposit amount will be in most cases.
Customer service is also important. Online chats are helpful to a pint, but it’s nice to be able to talk to someone on the phone if you have questions about the account. Many online banks have a customer service number that offers customer support from a human.
You will have the opportunity to open two different types of accounts. The two options are regular saving accounts or opening a CD. Each option has its pros and cons. You will have much more liquidity with a regular savings account. For the most part, you can get your money almost any time, you want it. It won’t earn that much interest, though. If you decide to go with a CD option, make sure that you choose one that you will be able to leave alone for the whole term. Taking your money out of it can be costly.
Spending a few minutes of time researching accounts online will help you find one that is worth it. You can find a high yielding interest account if you are patient.
Do you have a high-interest savings account? If so, how did you find it?
Hello, everyone. There have been multiple money challenges out there. One of them, the 52-week money challenge has gained a lot of popularity during the last couple of years. The 52-week money challenge works for some people, while others start off strong and fall off to the wayside. I recently stumbled along and found another challenge that seems kind of interesting. It’s called the 365-day money challenge.
Pay Yourself First
The concept of the challenge is pretty simple. There are 365 days in the year. Each day before you go out, you need to pay yourself first. That is vital. Paying yourself first means that you don’t have to worry about that later.
The second important point is that until paying yourself first becomes a habit; it needs to be extremely easy to do. It takes 21 days to form a habit, so it’s important to make saving as easy as possible for those first three weeks.
How Does the Challenge Work?
Each morning when you get up, you need to pay yourself some amount before you do anything. The payment can be anywhere between a penny to $3.65. Once you’ve made that payment to yourself, you “x” out the box on your chart. The next payment the following morning can be any of the remaining amounts on the diagram. You do this each and every morning for the entire year. When you are done, you will have saved $667.95. Even better, you will have started the habit of paying yourself first which will be an asset for the rest of your life.
There are a couple of necessary steps that go along with the challenge. After printing out the challenge sheet, you need to place it somewhere where you will see it every morning. The bathroom or your room is fine. It needs to be visible so that it’s in your face each morning.
The second thing is that you need to make the payment each morning physically. You need to go to your purse or wallet and place the amount you decide to pay yourself that day into a jar that is specifically for this challenge. That payment is significant. It will benefit you in the future.
There are two advantages to this challenge over the 52-week money challenge for those who struggled to get their finances in order. The first is that you’re starting with small amounts that anyone, no matter what their current financial situation can participate in. If all you can do is pay the minimum amount each day for the first month, you’re only out of $4.65 for three days. There should be nothing holding you back.
The second main advantage is the challenge is done daily. It requires you to think about saving every day. Even though the amount that needs to be saved isn’t that much, the process of thinking about it will cross your mind each morning as you pay yourself. By the end of the 365 days, paying yourself and saving money each day will be a natural part of your day. When you are only thinking about saving once a week, it can turn into a situation where saving money is only thought about at the last minute at the end of the week, and the process never gets instilled as a habit.
For years I had a savings account at one of the major banks. In the beginning, everything was fine. They provided great service, and they even had excellent products. I even took the time to sign-up for my first credit card with them. The longer I stayed with that bank, the more that things started to change. The banking relationship no longer felt right. I ended up closing the savings account a couple of years after opening it. In this post, I went to share with you why I did that.
When I first opened my savings account, there were not any fees with it. It was pretty much a regular account. All I had to do was make sure that the account stayed positive. That’s what I did. About two years after I opened the account, the bank started adding new rules to it. The first thing that changed was that I had to have a certain amount of money in the account. If I didn’t, I would be charged a monthly fee. Second, I would be charged a fee if I made more than three withdraws per month from the ATM. Since this wasn’t my main account at the time, I figured that I’d keep it open and see if I could follow the new rules. After six months in, I had been charged a few fees because some unexpected expenses came up. I realized that it was worth the fees to have this account, so I closed soon after.
Something else that turned me off from the bank was the persistent selling. I worked in a bank a few years after this, so I understand that every bank has goals that they need to meet. That’s how the tellers and the managers get bonuses, but as a customer, I didn’t need to be bothered every time I’m in the branch. It got to a point where a teller was asking me if I wanted to open a checking account with them every time I went in a branch. I’m pretty sure that if I wanted to open a checking account with them that I would have done so when I opened the savings. I was also getting asked to sign up for another credit card. After a while, you get tired of hearing them every time you go into a branch. It made my decision to leave that bank very easy. Unfortunately, I still have my credit card with them because it has a balance on it. I haven’t been inside a branch in over a year because I don’t want to be bombarded with questions.
Another reason that I left the bank is that I wanted to feel like a valued customer again. At the bank, I felt like another number. They just wanted to sell me crap so that they could reach their sales goals. I wasn’t having that. I think that banks should show you that they care for you by making sure that you’re accommodated instead of trying just to sell you stuff.
Since I’ve left the bank, I’ve opened up a few more accounts at the credit union. The difference in service is night and day. I don’t have to worry about people trying to sell products to me every time I’m in a branch. I also don’t have to worry about unwarranted fees either.
Do you use a bank?
Many people in this country live check to check. If an emergency were to happen, there is a high chance that they won’t be able to afford. This is where having an emergency fund comes into play. Its sole purpose to be a safety net for you. That money should be used for emergencies only.
Many financial experts state that a beginner’s emergency fund should start with at least $1000 in it. Sometimes people will look at that number and wonder how they are supposed to save that amount when they are living check to check. It’s not easy, but it can be attained. People are busy with their day to day activities, but saving $1000 for an emergency fund must become a priority. Below are three things you can do to help you save for your emergency fund.
The first way that you can save money for an emergency fund is by getting a part time job. Some people may not make enough at their full-time job, so this is why they need to find a part-time job even if it’s temporary. Your primary focus should be saving $1000 as quick as possible. People may think that they don’t have the time to work a part-time job. They are wrong. Many people work a part-time job for a few hours every weeknight. You can also work Saturday’s and Sunday’s as well. Remember, you don’t have to work the part-time job forever. You just want to work it until you have enough money in your emergency fund.
The second way that you can save money for an emergency fund is to have a particular amount of money automatically deducted from your paycheck each pay period. Any little amount helps. Even saving $10 per month is better than not saving anything at all. The point is to start saving! You may have to change your budget around depending on how much money you make, but it will be worth it. Once you start saving, you can gradually increase the amount from $10.
The last way to save money for an emergency fund faster is to learn a side hustle. Side hustles can be done before or after you go to work. There is no shortage of side hustles. A few things that you can do is become a freelancer, sell things on eBay, create a shop on Etsy, or mystery shop. I’ve been side hustling for years. I’ve used that money for my emergency fund and to pay off my debt.
An emergency fund will give a piece of mind. Last year I had a minor accident, and my car windshield cracked. If I didn’t have an emergency fund, I would have had to use my credit card which is something that I’m glad I didn’t have to do. I was able to withdraw the money that I needed to get the windshield fix without any hesitation. I didn’t stress over the situation at all. Having an emergency fund allowed that to happen. What are you waiting for? It’s time for you to start saving for yours today.
Do you have an emergency fund?