Ok, I know I just posted about this a week ago… I just hate thinking that people are wasting their money in a standard savings account. So, with just about 15 minutes of my time, I compiled a spread sheet to show you the difference in yields.
I mean, with Google’s help, it is so very easy to research. I had a standard savings account for years and years. Until, earlier this year, I decided to Google a little bit. So, in February I went with Discover Bank, because, at that time they had the highest yield. Apparently, they now have some stiff competition.
These are adjustable yields; when I went with Discover, I received a 1.5%. But the nice thing is, they have slowly climbed to 1.75% yield, which I am receiving right now.
Notice, I put in the spreadsheet what you would receive every year per $10,000 you kept in your account. The difference from a typical savings at a big bank, and a high-yield savings at a non-traditional bank, is STAGGERING!
You might think there are catches for the high yield accounts, right? Nope! There’s not. No monthly maintenance fees, no minimum balances, etc. however, they do have transaction limits. For instance, at Discover, I can only make 6 transactions a month. Transaction means deposit, transfer, or withdraw. But it’s a savings account… the point is not to withdraw the money. So, I make weekly transfers and stay well under that 6 transaction limit.
It can all be done online. No need for a brick and mortar bank to make your deposits.
Take a look for yourself. You will thank me for it!