Yes sir or madam. I'll say it again. High Interest Online Accounts.
The gist is this. They don't have a brick-and-mortar building in 'meatspace'. They're not faced with the overhead cost of that presence and they insist on certain conditions to which you must adhere to benefit from their high level of interest. But believe you me, it's worth it.
Sure, a couple of years ago, you might be able to get a percent interest in your local bank savings account and anywhere from 4-7% online. These are not those times. Don't fret. The fact is, it is still a really simple way to have your money work for you. As I said, there are conditions and there aren't too many risks. For our American readers, your money is FDIC insured up to about $250,000. And if you're socking away more than that, you probably aren't reading this blog right now.
So you're looking for one of these accounts . . . and you definitely should . . . here are some questions for which you need answers.
-Is there a minimum balance?
-Do you need a minimum or require amount of transfers or transactions?
-What is the rate of interest?
-Does it apply to your entire deposit?
As an example, we've been looking at this online credit union account:
As you'll see if you click through, there are stipulations to benefit from their current interest rate of 3.25% but if you can make it happen, it's worth it. But the simple math is you'll receive $3.25 annually for every $100 you have in the account for the year.
An explanation of Annual Percentage Yield.
Some thoughts and suggestions for this years better interest bearing accounts.
Simple ways like this help your money to work for you. It could keep the lights on another month.
Happy hunting!
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