I’ve earned just under $100 in the few months since I moved my savings into an online savings account that has a good Annual Percentage Yield, APY. Your bank holds on to your money, which they leverage and use to earn more – you should be getting paid for your part in that. With Marcus, I’m currently getting 2.05% APY, but CiT bank is even better at currently 2.25%APY (most high-yield savings account yields fluctuate monthly).
A high-yield savings account is typically free, easy to setup, and pays monthly interest on your balance. It’s nice to have your money earning a little extra money, in fact it’s crucial, but the yields from savings accounts don’t even hold their own value each year, as more money is printed and the value of a dollar depreciates. (Remember, the United States Dollar is a belief system and a fiat currency). While the Federal Reserve usually undermines the dollar around 2.5% per year, a good savings account yield can help you maintain your current level of wealth.
Most people have never tried an online savings account before, but the process is modern, simple, and very quick! Sign up for a savings account with a good interest rate, and you’ll be able to access your account number and routing number. From there, you can make an ACH deposit from your current savings account, transferring your savings to the high yield account.
While I haven’t seen any fine print w/ these accounts (high balance requirements, ridiculous fees), there are Federal restrictions which apply to every savings account you should be aware of. Federal Regulation D limits the number of withdrawals you can make from a savings account each month to 6. Some banks may impose restrictions if you withdraw money too often from a savings account.
Investing that money can return even greater yields, and earn you passive income so you can retire. Instead of just working hard for your money, you need to make your money work hard for you.
Wealth has a snowball effect, and even little savings over time can accumulate into a massive chunk of money. Work on liberating yourself from debt first, building an emergency fund for peace of mind next, and turn excess savings into money printing machines by investing properly!
Financial independence can seem like a dream but it IS possible, and your mindset and belief in that possibility, neigh, inevitability is vital! Please keep taking advantage of this blog to help sharpen that mindset, the one that knows that to get ahead you need to work for yourself and invest your money.