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Lately, I’ve been watching a video series on personal finance at Lynda.com that is taught by financial advisor, Jane Barratt. If you are wanting to learn more about personal finance OR just need a few extra tips and insights about your finances, I’d highly recommend you check it out.
In the series, Barratt mentioned something very simple but profound about where we stash our money. She noted that many of us could be unknowingly cheating ourselves by where we put our savings.
No brainer, right? Well, please stay with me for a second.
Currently, my bank (and savings account, with U.S. Bank) offers 0.05% on money that I have in their account. So, every month they deposit a few cents here for my allowing them to use my money. As you know, banks make money off of your money that you keep in their vaults. And, in return, many of them pay you a mere pittance for the privilege.
In our case, we have two checking accounts that we have money in. One acts as a savings account and the other is a regular checking account where money comes in and out. We hardly ever touch that savings account. That being the case, Barratt suggests that we ought to be looking for the best highest yielding savings account.
Granted, we aren’t going to get rich off the interest. But, here’s a look at what is currently out there, per the NerdWallet’s savings account rate chart:
I don’t know about you, but 1.05% looks a lot better than 0.05%!
Given that I could be getting a better return on my savings, I am essentially cheating my family out of a whole percentage of interest from our savings! Yikes!
Needless to say – this is not earth-shattering, but something to really keep in mind. And, over time, we all know how this stuff adds up.
Where do you keep your savings?
Since we all manage our money differently, I’d be curious to know where you put your savings? I’m assuming that you want it readily available in case of emergencies or other needs. But, given that most of this money doesn’t get touched very often, do you invest it, put it in a money market, under your bed?
I’d be curious to know.