Savings accounts are making a comeback, thanks to higher interest rates and easier access to accounts because of technology. The average annual percentage yield in the U.S. is 0.09%, but many financial institutions are offering a much higher rate.
Learn more about why using a savings account could be a good option for you.
The internet provides many valuable resources at your fingertip, so don’t be afraid to do some research when looking for what’s best for you. While you’re shopping and comparing rates, check out the fees each institution has.
It also makes it easier to transfer money from your accounts. For example, many institutions offer mobile deposit, so you can move money around without having to visit a brick and mortar location.
Technology also helps you to monitor your accounts. A+FCU offers Card Guard, an app that provides alerts for suspicious transactions.
Regardless of where you keep, the most important thing you can do is establish a savings. Basic savings accounts at a credit union can help you with this; once you’ve built up your funds, you can transfer somewhere that has a higher yield or switch accounts. While interest rates are increasing, it’s also important to consider certificates, which will earn an even more, or using things like retirement accounts if that’s what you’re saving for.