Have you checked your bank statements lately? Did you notice the HUGE dividend you get by keeping a few thousand dollars in your saving account?
Unfortunately most banks are offering a whopping 0.01% Annual Percentage Yield (APY) on their savings accounts. The days of having a savings account as your main investment strategy are long gone along with your love beads.
How can you get the maximum return for your money? Of course, investing in various stocks, bonds, money markets, CDs, etc. would seem like a great option. However, a lot of people need to have quick access to their money in case of an emergency or the sudden need to fly to Italy.
Enter high yield savings accounts. Most banks are still offering a low-low-low 0.01% APY. But if you search for "HIGH YIELD SAVINGS ACCOUNT" you'll find a host of other financial institutions that will give you more bang for your buck, averaging between 0.40% to 0.70% APY.
Read the fine print: Do they have banking fees? What is the minimum initial deposit? Is there a certain amount of time you must keep your money in the account? Do you only get the higher APY if you have lots of money in your account?
So when that overwhelming desire to book that flight to Italy hits you, increasing your saving dividends might put a few extra dollars in your pocket for those important souvenirs.
For more savings and investment tip, go to SwainConsultingllc.com.