Where Should I Keep My Money?

April 3, 2023

Interest rates, the economy, and the financial sector are ever-changing, which leaves many individuals wondering where they should keep their money. There are always going to be individuals who keep their money hidden in their mattress because they don’t trust their funds are safe with any financial institution, but there’s more than one flaw in that line of thinking. Your money is best kept in the bank, but which bank and what type of account works best for you is an individual decision. Many individuals at least consider keeping their money in more than one account, which is a wise choice for most. However, you don’t need to make your decisions based on what others do. In the end, your money is best kept where it makes money for you.That said, start reading to learn about the options and on average, who they work best for.

Online Bank

Online banks are quickly becoming more traditional, and using one is a wise decision for those who want to make a little more money. One of the biggest benefits of using an online bank is the savings. You place your money in a bank and pay fewer and less expensive fees, and earn more interest because the bank does not spend as much money employing live humans and maintaining overhead costs on physical locations. This is a great option for your checking account as you’re not spending money at the ATM to access your account if you don’t have access to an ATM your bank owns. The fees are lower, the deposits are easier, and the money is better. You’re also offered higher rates on your savings account earnings if you go with an internet bank. It’s a small change with some big savings.

Continue reading to learn about the details of certificates of deposits.

Certificate of Deposit

A certificate of deposit, commonly referred to as a CD, is an excellent option to keep money safe. It’s best to use a CD if you’re not interested in accessing your funds anytime you want. A certificate of deposit can be opened as long or as short as you’d like, but you typically earn a higher interest rate if you open a long-term one rather than a short one. Most are best when opened for a year or more, and this is one of the best options you have regarding investing. Choices range from a few days to as long as ten years. The savings rates are much higher with CDs because the bank knows you’re not touching this money for at least a year in most instances. If you want to put thousands of dollars into a CD with at least a twelve-month term, you could earn more than one hundred dollars in interest in just a year. However, if you want to keep your money easily accessible, a certificate of deposit is not the best choice.

Continue for details on savings bonds.

Saving Bonds

Savings bonds may be more old-fashioned than other savings methods, but they’re still a good place to keep your money. The rates aren’t as high on these, so you won’t earn as much interest with a savings bond as you might with another type of savings, but it’s one way to earn some money in a way that leaves you feeling safe. The FDIC guarantees your funds are safe up to 100,000 dollars if you choose to invest in one of these bonds. This leaves you with security, but it’s a much better long-term option than a short-term one.

One of the biggest benefits of a bond is the tax savings, as you’re not required to pay state or local taxes on the money you invest in bonds, which can save you tax liability in many instances. Many savings accounts don’t offer this kind of tax savings, which means you’re not saving money in addition to investing money.

Continue reading to learn the ins and outs of cashback checking accounts.

Cashback Checking Account

A cashback checking account is a great option for anyone who wants to make the most of their money. Cashback accounts work simply. You put your money into the bank, use the debit card you’re issued to make purchases with that account, and then you typically get up to one percent cash back on every dollar you spend. For example, if you use your debit card online to pay your mortgage, your utilities, and your other monthly expenses as well as purchase gas, groceries, and entertainment for a total of seven thousand dollars per month, you could earn up to seventy dollars per month in cash back. If you add your cash back every month to your savings account, you could have a total of 840 dollars in savings every year just from making your everyday purchases. That’s major savings for just using your debit card regularly to live your life.

Continue reading to learn when additional banks may be a good idea.

Additional Bank

Using an additional bank is not a bad idea if you don’t want to keep your money all in one place. Some people believe they must stick with one bank to keep their money in savings, CDs, and other accounts if they use that bank for their checking account, but it’s simply not the case. It may take a little more effort, time, and energy to take your money elsewhere, but there is nothing wrong with using multiple banks to service your money. You can use checking with a bank online, savings with a CD in another bank, and even use cashback for your expenses through yet another bank. You get to make these choices to benefit you and your finances, and using only one bank is never a requirement. Use as many as you want, but be careful to keep track of your money so you’re aware of what it’s doing every day.

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