If you have a savings account then you’ve most likely received those bank statements that let you know that your bank has paid you interest on your account. A whole whopping 0.09% of interest, depending on your bank it can even be less. Geeeeee thanks…. Well I’m here to tell you that there is a savings account that actually yields a large return!
In our house a big theme is “let money work for you”, utilizing a savings account that will actually pay you is the simplest example of this. We started looking into a high yields savings account when I graduated college. Most of you probably know that you have a six month period before you have to start paying interest on your loans. So instead of paying FAFSA, we are paying back my loans into a high yield savings account and at the end of the six month period we will use that money and the money made on the account to pay off my loans.
How much should I save?
This all depends on your personal financial situation but it’s recommended that you have six months of your totally monthly budget saved, this will cover you if someone loses a job, an injury occurs or a major home repair comes up.
Another nugget of info, be sure to research FDIC insurance, this protects your money up to $250,000 in these types of accounts.
How do I know which bank to choose?
This is important because some have monthly balance requirements and maintenance fees. So do your research and make sure you read all the fine print.
How much can I expect to get?
Through my research I found that most yield a return of about 1% but some banks offer a bit more (1.55%-2% annually) so again, make sure to do your research.
Don’t be afraid to put your money to work! and always, if you have a question or want to learn more just shoot me a message!