Did you set savings goals this year?
If so, how’s it going?
That’s an honest question. Very often people set savings goals but they don’t follow through with them. Why? Maybe it’s because they didn’t set a realistic budget or maybe it’s because they just haven’t found the best savings accounts . … yet.
We’re here to help. Andrew Schrage, from the popular money website MoneyCrashers.com, is here to give advice on how everyone -- yes everyone -- can find the best savings account.
Open a High Interest Savings Account
A high interest savings account is a good way help you stack cash and avoid impulse purchases. If you see your money growing each month you will be less likely to make a withdrawal, right? Schrage says yes.
A high interest savings account encourages people to save by rewarding their good habits with higher interest than traditional savings accounts. “The American Express High-Yield Savings Account is currently offering a 0.90 percent APY,” says Schrage. It has no hidden fees and no minimum balance requirements.
Become a Client at a New Bank
When people want to open a new financial product they usually go to their bank. When it comes to saving this may be a mistake. If all your accounts are in one place it’s convenient to access them. If you don’t see or think about your savings you won’t be able to spend.
Consider an online bank for your savings account. Schrage recommends Ally Bank because they offer good interest rates (currently 0.99 percent) without any hidden fees.
Just Say No to a Debit Card
This is the best way to avoid spending temptation. If you don’t have access to something you won’t be able to use it, don’t you agree? “I put as much money as I can into my savings account based on my budget (and) I try not to touch it unless an emergency pops up.” says Schrage.
Synchrony Bank is currently offering 1.0 percent on all balances in an Optimizer Plus High Yield Savings Account.
Consider Your Budget Wisely
People often save every cent they have and don’t leave themselves enough money to live. When you deposit your hard earned money into the best savings accounts you want it to stay there, this can be done by setting realistic savings goals. “Get yourself on a budget, reduce your spending.” says Schrage.
For longer term goals you may want to consider putting your money into a cash deposit. The interest rate is even higher than a high interest savings account and since it’s there for a certain period of time you won’t be able to spend it impulsively. BAC Florida Bank is currently offering 1.18 percent on a one year CD.
Think Twice Before You Spend
If you spend the money in your savings account on impulse purchases you won’t be able to use it for the intended purpose. Schrage keeps his savings safe by talking himself of out spending. “I avoid impulse purchases by asking myself one simple question – do I really need this or just want it?”
Every time you want to make a withdrawal from your savings account think about what you’re giving up -- the vacation you’ve been planning, paying off your unwanted credit card debt or saving for the down payment on a home.
If you want to start saving money but don’t know where to begin call us today at 1-888-919-CESI to speak with one of our professionals. We’ll help you get on the right track towards saving for your goals.
Image Source: Flickr
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Consumer Education Services, Inc. (CESI) is a non-profit service provider of comprehensive personal financial education and solutions for all life stages and for all of life’s milestones. Our goal is enhanced economic security for everyone we serve.
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