Are you looking to save your money over the next couple of months or years? Planning a long vacation or trying to save up for a new home? Then you should know that there’s an art to saving your money in a savings account, instead of just letting it sit there. Here’s how you can make the most out of your savings account money!
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Make Concessions for a Higher Yield
In the hunt for a higher yield for a savings account, you’re likely going to have to compromise on some things in order to get a good yield. Account minimums are a common trade-off for a higher yield, and if you know the minimum is doable for you, it’s normally worth the trade-off.
Take Advantage of New Account Specials
Sometimes, it’s better to just take your business to another bank. There are plenty of specials and incentives banks give to new accounts that can help you jump start your savings. Here are some great bank incentives for October 2018.
Get a CD or CD Ladder
A CD, or Certificate of Deposit, acts as a savings account and generally offers a higher yield than most, but it penalizes you if you try to withdraw money before the CD is matured. If you know you can go a long time without touching the money, a CD can be a great investment. A CD ladder lets you use several different CDs with different term lengths, so you have more flexibility of when you can get to your money.
Switch to a Credit Union
If you’re not getting the interest rate that you’re looking for in a bank, then you should consider a credit union instead. Credit Unions on average offer higher interest rates on CDs than traditional banks, and normally have incentives for new accounts as well.
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