There are so many different types of savings accounts available today that is can be hard to keep track. Unfortunately, many people are actually choosing the wrong ones. If you are ready to stop wasting your time and money on your tiny savings account, you are going to want to see these savings accounts that pay you like crazy!
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A traditional savings account is what you will find at your local bank. This type of savings account can be helpful to have especially if it easily links to your checking accounts. Most banks will also allow you to protect yourself from over-drafts by linking to your savings.
The interest in a traditional savings account however is usually below .06% which doesn’t end up being very much at all.
For small time savings plans, this might not be too big of a problem for you.
Think of a CD as a way of stashing your cash away for a rainy day. It is the ultimate hands-off saving method. What you do is get a large sum of money together (usually $1,000 minimum) and put it into a CD where it will collect interest.
These funds will then sit there collecting interest for up to 5 years.
With a CD, you will gain interest up to 2.5%. There are no monthly fees and they are fairly easy to set up. See CIT Bank’s best CD investments.
*While most CDs will penalize you for withdrawing funds early, there is an 11-month option with CIT Bank that has no penalties!
When it comes to opening a high yield savings account, the best method is to use a trustworthy online source or go through a local credit union. These options are more likely to have savings accounts that pay you like crazy.
A high yield savings account is similar to a traditional savings account with the exception that you stand to get paid more. Starting an online account for your high-yield savings account is a smart move and with CIT Bank you can get started for only $100!
What does daily compounding interest mean?
Daily compounding interest is an awesome feature in that you will gain interest on your interest!
For example, if you open a high yield savings account with $1,000 in it, you will not only gain interest on that $1,000 but on any additional interest you make as well.
This is the best way to get the most for your money.
Like a high yield savings account, a money market account will give you a higher interest rate than a traditional savings account. You are also more likely to receive a higher interest rate if you go through a local credit union or an online bank. CIT Bank will pay up to a 1.85% interest rate!
While you actually stand to earn more interest than a high yield or a traditional savings account you lose the luxury of frequent withdrawals and deposits.
*Check out this money market calculator to see how much money you stand to earn.
This is the biggest, best savings account of them all!!
If you are completely committed to building yourself a savings account, especially a savings account that pays you like crazy then a Savings Builder with CIT Bank is the way to go!
Put plain and simple, The Savings Builder account is designed to help you really get paid from your savings!
It requires only $100 to open and $100 per month. Doing this simple method can get you an interest rate up to 2.45%!
Take your time to go over the pros and cons of each and consider your unique financial situation. If you don’t have big savings built up yet, a traditional savings account may be the best way to get started saving.
Perhaps you have a larger amount that you still want access to, then I suggest weighing the difference between a high-yield and a money market account.
Lastly, if you have a larger sum of $1,000 or more, (perhaps from taxes) but you have a terrible history of spending money too fast, I would recommend looking into a CD. It’s a great way to force yourself to save money and gain interest.
If you are totally done with little savings accounts, The Savings Builder is the way to go! This savings account pays you like crazy and only asks for a small deposit from you each month!
The idea of multiple savings accounts is becoming more and more popular and personally, I think the idea is genius! This can be a little trickier to figure out, but here is my top 3 recommended combo:
Simple savings account: Opening a simple savings account to help you save for Christmas, vacations or home repairs is a smart way to get easy access to these funds and allows you to quickly change savings plans throughout the year. You can do this at whatever bank you are currently using so that transfers between savings and checking are easy.
Money Market Savings Account: A Money Market Savings Account allows you to save more money with a higher interest rate and because it limits the number of transactions you can do, this is a safer saving to have for minor emergencies like an unexpected car or home repairs.
*This could also be a great way to save for a family vehicle so you can pay in cash!
The Savings Builder: This account is insanely beneficial. Having a Savings Builder savings account to simply build your wealth is something everyone should aspire to do.
*If you are still paying off debt or building up a solid 3-6 month savings for your family, it might not be time for a $100 per month commitment.
However, if and when you are ready to start committing to that $100 each month, this is the best savings account that pays you like crazy!
Opening any of these accounts is a rather quick and painless process. For a traditional savings account, I recommend making an appointment at your local bank in order to get set up with an account that works for you. You can also talk to your bank about setting up a CD. Before you commit to anything, be sure to compare interest rates from different banks and from online banking sources.
As I said before, when it comes to a high yield savings account or a money market account, your interest will most likely be higher if you go with an online source or a credit union.
Browse all available online options for CD, high yield savings and money market savings.