June’s Win: Is It Time to Switch Your Savings Account?

The average savings account pays just 0.38% interest according to the FDIC. Your one money task this month is simple: ensure your hard-earned money is earning significantly more than that.

Many high-yield savings accounts now offer interest rates around 3.5%, some even higher. On a $5,000 balance, that is the difference between your savings account making just less than $20 a year and making $178. Every dollar counts, and switching is simple and fast. You don’t even have to close your old account; there’s nothing wrong with having multiple savings accounts (assuming there’s no annual fee).

What to Look For:

FDIC Insurance: Ensure the Federal Deposit Insurance Corporation protects your money.

No Hidden Fees: Avoid monthly maintenance fees or high minimum balance requirements that eat into your earnings.

How to Get Started:

BrightDime’s financial coaches can help you find an HYSA (High Yield Savings Account), just schedule a meeting for a time that works for you. Prefer to research on your own? Sites like NerdWallet are excellent, independent places to compare top-yielding banks. (BrightDime has no affiliation with NerdWallet, we just think they’re a good place to start looking).

Take action today to let your money do the heavy lifting.