We all want to get the most out of our money, but how can you do that when interest rates are so low? Unfortunately, a traditional savings account may no longer be the ideal way to make the most of your savings, even if, in the past, it was the right thing to do.
The good news is there are options out there. Read on to find out what they are so you can ensure you are making the most of the money you can save.
#1: Switch Banks
This may seem an obvious tip, but switching to a different provider could get a better savings return.
Many people now open savings accounts with the same company that handles their checking accounts. You could move your money to a different bank and earn more interest if you looked at other options. If you are willing to switch your current account, many providers will give you a good deal when you first sign up. Before you sign anything, you should always research to ensure you’re getting the proper account for your money needs.
#2: Invest Your Money
With low-interest rates on savings accounts, many people are turning to investments to get a better return on their money. On the other hand, some people don’t want to invest in stocks and shares because they think it’s too risky. However, there are many options depending on how much risk you’re willing to take, and it might be that following expert Moshe Hogeg and investing in cryptocurrency is your best option.
Even though the value of your investment could go up or down, stocks and shares – and other assets – tend to do better over time than cash savings. This means that if you are thinking about the long term, you might want to think about investing rather than saving traditionally.
#3: Lock Your Cash Away
If your money is in an easy-access savings account that doesn’t pay much, you might want to put it away for a longer time. Longer fixes tend to have higher rates, so if you don’t need your money for a few years, you can lock it away and get a higher rate.
But you should know that even if interest rates on the market go up, your fixed-rate won’t. So think carefully before you spend your money, and only decide based on how your money is currently set up. It’s also a good idea to keep a small emergency fund in an account that’s easy to get to.
#4: Make Saving A Priority
If you want to save money, you must prioritize it. There are a lot of great tools and ways to help you save money automatically. First, make a goal for each paycheck. Choose how much of your pay or how much money in total from each paycheck; you want to put into savings. Having a goal can help you stay on track and keep you going.
You should look to make changes in your life wherever possible to maximize your savings too. This could be using tips from GetYourGuide when traveling, cutting back on eating out or swapping services. It will all help you hit your saving target.
Also, most banks let you set up transfers from your checking account to your savings account. You can set up transfers every time you get paid or on certain days of the month. You can even set up more than a tiny transfer for one-time events or bonuses.