Saving Better: Just One Thing To Do

Last week we covered how you can get your finances prepared to buy a home, and a big part of that is saving for a down payment. Since we’re talking thousands of dollars here, it’s important to make sure you’re getting as much interest on that money as possible. That’s why our Just One Thing for June is to make sure you’re getting paid more than the national average of 0.45% interest on your savings account.

There are plenty of 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%. It’s straightforward to open a new savings account, and you don’t have to close your old one. Here’s how to start:

1) Find out what rate your savings account is paying. Anything below 3-4% and you should consider other options.

2) Look for savings accounts with FDIC insurance and rates above 4%. Avoid accounts with monthly fees or high minimum balance requirements.

3) NerdWallet is a good resource to find high-yield savings accounts if you’re not sure where to start. You can also always chat with a BrightDime coach if you’d prefer one-on-one help.

Don’t settle for sub-par interest rates, check yours today