If you are talking about less than $25,000 or $30,000 you might be better off paying yourself interest on your money. Most saving account rates are so small, I mean they are paying you around 1 % for letting them use your money. Okay, example you have $10,000 in the best saving account which pays you 1.15 % APR, that means that bank will pay you $115 a year to keep your money. You would be better off renting a safe deposit box for $25 or so a year. $10,000 isn’t alot of money in today’s times.
Now use the tips below to increase your savings account and you could save about $600 – $1200 a year. That is the high interest savings rate. $600 would be 6 % and $1200 is 12% that is impossible to get from any bank in the country.
7 Simple Tips to Increase Your Savings Account Without Impoverishing Yourself
Certainly we completely understand that having a saving account is important. What’s difficult, nonetheless, is setting that concept into use. It’s rough to add to a savings account while you find yourself lasting paycheck to paycheck like numerous folks find themselves being forced to do these days.
The good news is that even the most itty-bitty (check out tip #1) of savings can have big impacts on the growing of your nest egg account. In that respect are certain things you will be able to do to contribute to your account without it being a burden.
Try out these tips to effortlessly boost your savings:
1. Small Automatic Deposits. Chances are you need all or most of your paycheck each period. However, you can save a small portion of this amount by having it automatically deposited into your savings account. Most banks will allow you to set up automatic transfers. Each time your paycheck is due in, schedule a transfer to savings.
· Even if this amount is $5 or $10 bucks, it will add up over time.
2. Pay With Cash. When you pay for your essentials with cash, you’re really seeing the exact amounts of money you’re spending as the money changes hands. Then drop the change from these transactions into a jar (give this jar a name to make it fun) when you get home. Before you know it, you’ll be depositing large amounts of change into your savings account with little effort!
3. Credit Card Round Up. Some credit cards, such as one by Bank of America, will actually round up each of your purchases for you to the nearest dollar amount. The rounded amount will be automatically deposited into your savings account. Getting one of these card accounts could make adding to your savings account easier on you.
4. Add Up Your Charges. One month, add up everything you spend. It doesn’t matter how you’ve made the purchases – cash, credit, debit, etc. In analyzing these expenses you’ll likely find some recurring expenses that can go. Perhaps there’s something you could live without. That small expense will pay you back in the future if you add it to your savings instead.
5. Avoid Impulse Purchases. Everyone has fallen victim to an impulse buy at some point. Make a promise with yourself that you’ll never make them again. Rather, when you feel the need to get something, give yourself a 24-hour cooling off period or better yet make it 48 hours.
· If you still feel that you must have it after that time, go ahead and spend the money. If you’ve thought it over and you don’t need it, perhaps that money is better spent going directly into your savings account.
6. Avoid Credit Card Use. If you have trouble paying back your credit cards in full each month, stop using your cards. Switch over to cash and debit card use and slowly pay down the balance on your credit card.
· As your balances are paid off, the money you used to pay in interest to the credit card companies can be better spent in your savings account.
7. Reduce Everyday Expenses. Do an evaluation of your required expenses such as internet, phone, and grocery bills. See if there are any ways to reduce these bills.
· For instance, maybe you could easily switch to a lower cost phone plan or start clipping coupons at the grocery store.
· If you could find an extra $50-100 in your budget this way, you can greatly improve the look of your savings account!
Although you don’t necessarily have implement all of these changes at once, you should now have a better idea of the many ways you can add to savings. Just remember that even a few cents can go a long way!
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