May’s Just One Thing

Over the last few weeks we’ve been talking about budgeting and the importance of saving for your goals. If you’re saving for a goal in the next year or so then you’re probably keeping that money in a savings account. For the first time in years savings accounts are actually paying a meaningful interest rate so it does actually matter where you keep those savings now.

That’s why May’s Just One Thing is to check your savings account interest rate and shop around for a better rate. According to the FDIC the national average is currently only about 0.40% but there are banks currently paying over 4% annually. On a balance of $5,000 that’s the difference between making $20 on your savings account or making $200. It’s not a life changing amount of money, but it does add up.

You should make sure you’re saving in an FDIC insured account, and that there aren’t any hidden monthly fees or account minimums. If you’re not sure where to start you can always sign in and chat with your BrightDime coach. If you’re more a DIY type then NerdWallet has some of the banks offering the highest current rates here (we have no affiliation with NerdWallet, it’s just a useful place to start).