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Finding the most favourable savings rates

The usual thinking goes that the best to leave money to keep it safe is in a bank. People think that, if they are not using it at all, no harm done, right? However, if you live in a country with any sort of growth at all, the reality could be quite different. Usually, just leaving money in an account means you are losing money. This is because of inflation, something that follows economic growth. Luckily, most banks offer some systems in place to help against this. Savings accounts are a major help when it comes to keeping your money up. They offer you savings rates, so that the value of your money goes up over time, passively. Most of these follow inflation rates, so your reserves here should absolutely not devalue over time. However, there are still some caveats that come with this.

Being careful with savings accounts and their savings rates

Although there are plenty of savings accounts with savings rates that follower inflation, the true picture is actually a bit broader. Some savings accounts are very far from beneficial and offer quite meagre interest. These are obviously the places you want to avoid. On the other hand, there are also savings accounts that do the opposite. Not only can you keep up with inflation, but you can also surpass it. There are Certificates of Deposit (CDs) that offer the same thing, but they are very restrictive at the end of the day.

savings rates

Accounts with favourable savings rates

The good news is that there are some savings accounts that offer the best of both worlds. You can get great safety rates and a lack of suffocating restrictions.

However, this kind of savings account takes quite a bit of shopping around to find. Fortunately, though, we have plenty of rather interesting institutions offering great safety rates that we can show you. These are highly respected institutions, many of which you will most likely have heard of. To evaluate these institutions, we will be using one particular metric. The annual percentage yield (APY). This is the percentage you earn on an investment in terms of profit. However, it also takes into account compounding interest. It indicates the real rate of return, therefore, the real purchasing power of your money, after interest.

SmartyPig Savings

This is almost exclusively a savings account type deal. However, it does operate through the Sallie Mae Bank. With this account, you have options to set saving goals to keep an eye on for late. The good news is that there is also no minimum balance. However, the savings rates do have tiers. The APY offers runs from 1.25% for $0 to $2,500 deposits. Then there is 1.15% for $2,500 to $10,000 deposits. There is a 1.00% savings rate for $10,000 to $50,000 deposits. An finally anything above $50,000 is at a 0.95% savings rate.

Customers Bank

Technically speaking, we are talking about this bank’s money market savings account. This is an account that is strictly online, although not available everywhere. The great news it that it has not monthly fees at all, and no minimum deposit. No monthly fees either. The counterbalances to that is that, in order to take advantage of earnings, you need to have $25,000 or over-invested in the account. The APY for this account is 1.25%.

savings rates

First Foundation Bank

This is another online savings account, that is therefore widely available. There is a minimum deposit of $1,000, so it is not too high. There is also no monthly fees. Their APY is 1.20%, however, it is tiered. Most likely though, you will never have to worry about the tier system, as it only changes once on reaches $5 million in total deposits.

Citi

Citi bank has an accelarte savings program worth taking a look at. The company is very old, being around for as far back as 1812. It is one of these more well-known banks we discussed earlier. There is no minimum deposit. That comes with a tiny caveat, though. If you have deposited lower than $500 into the account, you have to pay a monthly fee of $4.50. However, once you get past this balance, the sky is the limit, and there is no monthly fee whatsoever. Their APY it offers is 1.10%, so a tad lower than the previous account, but still beneficial.

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