Do you have money that you’re putting away every month? That’s great, savings accounts are the first step to taking control over your finance. Keeping money in a savings account is a safe way to keep cash, however, in a traditional savings account, your money is losing value because of inflation.
Online banks offer higher yields than traditional brick-and-mortars do, up to 15 times higher. These banks have the same FDIC coverage, so there is no risk that your money will disappear. Over time, you want to be able to take on more risk by investing in other opportunities, like the stock market or real estate, but you can take the first step in making your money earn money by opening a high-yield savings account.
A 1.5% yield on an account balance of $10,000 can make you $12/month (or $150/year). Compare that to a traditional rate of .05% that makes less than $0.50/month (or $5/year).