“How to Find a Better Paying Savings Account?” plus 1 more

How to Find a Better Paying Savings Account?

Posted: 05 Jan 2012 04:00 AM PST

You have finally been able to save a little of your money. Now where do you put it that will be safe, easily accessible and continue to grow? The options are endless. You could put it in your mattress, you could it in a standard savings account, you might buy stocks or a CD/GIC, or maybe an online savings account is what you are looking for. Most of these choices can be confusing and even a little intimidating in the beginning, so let's take a look at them in more detail.

Under the Mattress

While hiding money under your mattress has a charming quality to it, your mattress as savings account is just not a good idea. It's not only unsafe to have your hard-earned money lying around where it can be easily stolen, it is a lot easier to spend it if is that readily available. The greatest problem with this strategy is that the only way that it will grow is if you add to it.

Standard Savings Account

The second option is to put your savings in a standard savings account at your bank or credit union (I recommend a credit union because they generally have less fees). This is a viable option. One of the nicest things about this type of account is that there is usually a very low minimum balance requirement. That being said, the rate of return is also very low.

Online Savings Account

Another relatively newer option is to open an online savings account. Like a standard saving account they generally have a very low starting balance requirement. They also give you ready access to your funds, but they can offer a higher rate of return on your investment because their advertising and overhead are so much less.

Invest

Buying stocks or a CD (certificate of deposit) will usually give you a good rate of return, but the downside is that it usually takes significantly more money to get started. Another drawback is that your money is fairly tied up for a certain amount of time and thus unusable. Depending on your circumstances, the greater rate of return may be worth these negatives.

So, as you can see there are many options available. You can get online and you will find that there are many different websites that can give you information about all of them.

One thing that is very important to remember when you are dealing with your savings is that the more educated you are about the options that are available the more secure you will be in making a decision of what to do with your money. So, take the time research it out and decide which option is the right one for you. You are already taking steps in the right direction because many don't even have any money that they have to worry about what to do with it, so pat yourself on the back!

Written by A. Jacob, a contributing writer for FrugalDad.com, a site that promotes and discusses personal finance and ways to live frugally.

Dollar Matters: It’s a Brand New Year!

Posted: 04 Jan 2012 09:59 AM PST

You’ve probably noticed that we’ve got a brand new year going, here. If you want your shiny new year to be a success, here are some great posts from around the blogosphere to help you out:

Take Time As A Family To Evaluate What You Accomplished Last Year

Melissa at Bible Money Matters encourages you to take a look back. Before you can move forward, assess what you did last year, and use that to help propel you in the new year.

Start 2012 Off Right

At Beating Broke, learn more about starting the new year off right. Some great tips for effectively setting goals that you are likely to actually accomplish.

What Do You Think of New Year’s Resolutions?

At Free From Broke, there is a discussion about New Year’s resolutions — and whether or not they are a good idea. Besides, as Glen points out, you can improve yourself year round.

New Years Resolutions: An Alternative!

Dr. Dean at the Millionaire Nurse Blog offers you some insights into what you can do instead of make New Year’s resolutions. Set your life up for a revolution!

5 Career Goals to Supercharge Your New Year

Over at Best Rates In, I offer some suggestions on how you can boost your career in the coming year. Get ready to advance in your career and make the moves that will help do what you want.

Adjusting Your Investment Portfolio for 2012

Shailesh at Personal Dividends has some great ideas for adjusting your investment portfolio in the coming year. Learn how you can prepare for what is likely to be another bumpy year on the markets.

New Investing Strategies for The New Year

Check out Green Panda Treehouse from some ideas, courtesy of Kristina, for investing in the new year. Learn some smart options, as well as helpful strategies.

Easy Ways to Eat Less This Year

Emily at Frugal Zeitgeist has some great ideas for healthier living. Simple ways to recognize serving sizes, and eat foods that are healthier and fill you up better. Eat less and feel better.

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