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When saving money, you want to put it in a safe place. Since we are not in the depression era, a safe place isn’t under your mattress. You want your money to go into some sort of account, but not any old account. What are the best places to save money & earn interest? Let’s talk about it:
What to Look Out for When Shopping for a Savings Account
There are a few key things you should look at when choosing a savings account.
- The Fees. Fees are the pesky little things that banks charge you for doing business with them. This can include maintenance fees, wire transfer fees, NSF fees, cashier check fees, etc. etc. Read through the fee schedule of any savings account to make sure you won’t be surprised by any charges.
- The interest rate. The interest rate landscape is pretty good for savings rates right now. But here’s the thing—neighborhood banks like Wells Fargo and Bank of America don’t *usually* have the best interest rates for savings accounts. Instead, online banks and other accounts typically have the highest and most competitive rates. Shop around with banks other than what you currently have. You may be surprised in how much better the interest rates are at other places.
- The minimum balance requirement. Some banks will require that you deposit a minimum amount into the account in order to open it. You may also need to deposit a certain amount to get the highest interest rate available. Check the minimum balance rules before opening.
Make Sure Your Cash Will Be Insured
Wherever you put your savings the place should provide FDIC insurance. FDIC insurance insures your savings up to $250,000 if the bank folds.
There are tons of online banks around and different places to put money which is all well and good. But you need to make sure you’re putting your cash somewhere safe.
If you’re using a credit union, the credit union version of insurance is called NCUA. Look for either of these two acronyms.
A Few Top Savings Accounts to Consider
So now you know what to look for in a bank and you know that your bank (or credit union) should come with some sort of insurance. Next thing on the to do list is shopping and choosing one.
Here are a few of the best places to save money and earn interest. To use the table below:
- Choose the account type either savings or money market account
- Choose the amount that you’ll be depositing
- Select your credit rating
Happy savings account shopping!
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