Savings Accounts That Earn The Most Interest

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With so many factors eroding away at your money, having savings accounts that earn the most interest is extremely important.

In my last article, I listed 10 Factors That Are Eroding Away At Your Money. Knowing what those factors are extremely important when you’re trying to protect your money against them. Although there are a few ways to really reduce those factors, maximizing the interest earned in your savings account will go along way.

Typical savings accounts average 0.07% whereas our top-rated online savings accounts below dish out more than 32x the returns of traditional banks and are insured by the FDIC. Simply put, most people are missing out on much larger guaranteed returns by letting their money languish in a traditional bank account with a low Annual Percentage Yield (APY). Although this is not all of the available options, take a look at these banks as an example of what’s out there:

  • Marcus Savings by Goldman Sachs — 2.05% APY
  • American Express National Bank — 2.10% APY
  • Barclays Online Savings — 2.05% APY
  • Synchrony Bank High-Yield Savings —  2.20% APY
  • Ally Online Savings — 2.00% APY
  • CIT Savings Builder — 2.25% APY (tiered)
  • Discover Online Savings — 2.00% APY
  • Alliant High-Rate Savings — 2.00% APY
  • My Savings Direct – 2.40% APY

While you’re looking at the different options, please keep in mind that a savings account is nothing more than a tool. Like any good toolbox, there are different tools for different jobs. Meaning this, do not be afraid to open different accounts for different purposes.

Make sure you name the accounts as you open them so you know the purpose of the account. For example – Rainy Day Account, Vacation Account, New Tires, Investment Account, etc.

If you are self-employed, I would suggest opening an account and naming it Tax Account. Speak with your accountant to determine the percentage of each check that should go into the account. Using a strategy like this ensures you are putting money away for various wants as well as obligations you will have in the future.

**Disclosure: Although I do use the strategies listed above, I am in no way associated or affiliated with any of the banks above. Please perform your own due diligence and consultant your accountant before opening any account with any bank. 

10 Factors That Are Eroding Away At Your Money

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“Money that you save is more valuable than money that you spend right away”, quote from Benjamin Franklin, is not entirely true.

The world is a much different place now than when Benjamin Franklin said this (if he even did say it all).

Here are the reasons why “a penny saved is a penny earned is not true”:

  1. Inflation – this one is easy, but think about it – the current inflation rate is ~2.2%. Although 2.2% is not a lot, your “penny” is automatically worth less every year.

  2. Taxes – Most families work from Jan. to mid-May for the government just to cover taxes. The more you earn, the more you pay. This is by far the largest chunk coming out of your “penny”

  3. Technological Changes – Every year some new technology comes out that you have to have. What you do? You go buy it! Even if you don’t buy it now, the market will force you to buy at some point. Go to #4.

  4. Planned Obsolesce – Think of what happened to the VHS players. What about the new iPhone or Android that comes out every year? Technology erodes at that precious “penny” you saved every year. Smart phones will continually update their operating systems until their older phones are obsolete.

  5. Financial Expenses – You ever get a bank fee? ATM Fee? Late Fee? Of course you have. Another piece of that precious “penny” gone.

  6. Lost Opportunity Costs – Very few people think of this one. If all the above factors have been eroding at that “penny” you have saved, what could you have spent it on that actually would have made you money? If $100 dollars is taken out in taxes, that is $100 less dollars you have to invest into something with an actual rate of return. Make sense?

  7. Interest-Rate Declines – if you depend on the interest of certain investments to meet your financial goals and the interest rate declines, then it may be harder for you to make up the difference. You might have to take an investment with a lower rate of return.

  8. Stock-Market Declines – This one is the biggest misunderstood concept of them all. People don’t really understand the percentages when it come to gains and losses in their brokerage accounts. If you invest $100 and experience a 20% loss, you would have $80 in your account. Next month you experience a 20% gain. Your dollar amount would now be $96, but you’re still $4 down from the original balance. In reality you’re still 4% down. Your account would have to grow 25% to get back to the original balance.

  9. Loans and Interest Charges – We have all had a car loan, right? In essence, you borrow the money from the lender at the given percentage rate, which is higher than your “penny” is earning in your savings. Once again eroding that precious penny you have saved.

  10. Lawsuits – If your wealth is not protected, then your wealth will be a target if you are considered liable in an accident.

    Moral of the post – a penny saved is NOT a penny earned. Do not leave money at rest. Put it work in vehicles that help prevent these eroding factors. Protect your money with proper financial structures. Become a steward of your money.

Reach Your True Potential

adminIntellectual Wellness, Personal Development Techniques

reach your true potential, personal development, intellectual wellness

As you are your greatest asset, to reach your true potential is the most important thing you can do for yourself and your family. To do that, managing your energy and your time is extremely important. This small article talks about a couple of techniques you can easily use to manage both of those and assist you in getting to where you want to be.

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Techniques Experts Use

adminPersonal Development Trainings

techniques experts use, personal development techniques, cultivate action,

Your own self improvement is what you make of it… plain and simple. You can become anything you want to be if you have the discipline, determination and drive to make it happen. This article will give you some simple techniques experts use that help them┬áto improve themselves and reach the levels they desire.

Techniques experts use to help with their personal development is to follow a consistent workout routine. Exercise has been proven to lift up moods and keep us from feeling depressed. All it takes is to get in a little bit of exercise everyday. Exercising is a great way to feel better about yourself, increase your confidence and create motion.

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Improve Your Confidence

adminPersonal Development Tips

Cultivate Action, Personal Development, Improve your Confidence

Personal development centers on activities that improve your confidence, whether they are invisible or visible to others. If you wish to begin – or are already on a path – for personal development, you may welcome some suggestions. The tips in the following article will aid your journey to do just that.

As always, the first thing to do is; get clear on what it is you are wanting to achieve. Once you do that, start writing down the goals that will get you there. When you start setting goals, the goals you choose may seem unachievable. Do not let this slow you down! To reach a lofty, ultimate goal, you need stepping stones along the way that will improve your confidence. As your confidence level increases, your success will increase, it’s a cycle.

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