Optimize Your Savings Account

According to the FDIC, savings accounts are currently paying an average interest rate of 0.45%. Our Just One Thing to do this month is to make sure you are being paid more than that on your hard earned money.

Here’s the good news: some banks are offering interest rates over 4%! On a $5,000 balance, that’s the difference between making only $22 with an average rate, and making $200 per year at 4%. Every dollar counts, right? It’s straightforward to open a new savings account, and you don’t have to close your old one. Here’s a quick explainer on choosing the right account for saving.

Here’s what to keep in mind when searching for a new savings account:

FDIC insurance: Make sure your money is protected. Look for accounts insured by the FDIC (Federal Deposit Insurance Corporation).
Hidden fees: Watch out for monthly maintenance fees or minimum balance requirements that could eat into your savings.
Getting started: Not sure where to look? If you have a BrightDime account, simply sign in and chat with your coach to get you pointed in the right direction. Prefer to do your own research? NerdWallet (https://www.nerdwallet.com/) is a great resource to explore banks offering high-interest savings accounts. (We’re not affiliated with them, we just think they’re a good starting point!)

Take action today and watch your savings grow faster!