Intelligent Investing - Hourly Rate Financial Planning and Investment Management

View Original

Want a higher rate of return on your bank account? Look on-line!

The Federal Reserve has been raising interest rates throughout 2018, but banks have been loathe to pass that extra interest along to their customers. Most “bricks and mortar” banks are offering less than 1% on their savings accounts. So where do you go and what do you do to earn a higher interest rate for your savings. Enter on-line banks (and more importantly, FDIC insured on-line banks). Some on-line banks are currently offering savings accounts yielding 2% or more. On a one hundred thousand dollar ($100,000) deposit, a yield in excess of 2% can mean $1,000 or more on your cash reserves each year. Yes, $1,000 does not seem exciting enough to overcome the at rest inertia of staying with your current bank, but in 10 years that $1,000 a year is now an extra $10,000. And $10,000 is worthy of thirty (30) minutes of your time to set up your new on-line bank account. A great place to find these higher-yielding on-line back accounts: www.bankrate.com. For even more information about this topic, click on the link above!