What savings interest rate should you be getting? 0.01% and 0.03% is considered low. While 1.05% isn’t really that much, its still 100x better than what you would get at commercial banks.
How’s it going everybody this is beat the bush today we’re going to talk about savings accounts a lot of people actually don’t even know what their interest rate is and if you don’t know it probably means you’re getting something on the order of 0.01 percent it’s pretty much close to nothing because if you put $10,000 in a savings account with 0.01 interest rate
You’re going to get one dollar a year now when you look at savings account there’s an atr term and apy apr stands for annual percentage rate that’s the actual interest rate that you get and a py is kind of like a compounded interest included thing it looks at and your percentage yield that’s what it stands for at the end of the year effectively including all the
Compound interest how much will you get in terms of the percentage so usually a py it’s just a tad bit higher than apr it really doesn’t matter which one you look at it’s just a different way to look at the same thing so we’re going to look at how much you get in terms of ten thousand dollar chunks of money that you put in there at point a 1.03 you’ll get a dollar
A year or three dollars a year these are normally the savings account like chase and bank of america all the commercial ones that you can actually walk into a store and get a savings account oh these are so little $1 and $3 in comparison to 1.0 5% which is 105 dollars set this is $100 difference per year and if you look at it what are the kind of people that would
Get the point one at point o three the people that might not have that much savings or the people that aren’t too on top of it getting the highest interest rate that they can and i’m sure plenty of people put more than $10,000 into a low interest rate yielding account and it’s just a shame because they’re just throwing money away whenever i look at this percentage
This point or one thing it’s just so ridiculous to me that you know i just have to laugh at it like every time i see this point o’lone i just go oh my gosh i can’t believe you know how much do you have in there you got you know ten thousand twenty thousand dollars in there at 0.01 i’m like you know how much you’re earning per year on i like a dollar or two this
Is so stupid why do you have your money in there when i talk about oh you should you know use one of the online banks it’ll get you like $100 per ten thousand dollars usually what keeps people from getting that is the hassle because you actually have to go online sign up for the account wait for it and verify a bunch of things it’ll take maybe like a week or two
To finally get it to a point where you can actually put money in and start generating good interest now there’s another thing is you don’t want to put your money in random places where maybe the bank could like a lot of business even though fdic insured fdic insured is like federal deposit insurance something historically even if the bank fails you would actually
Get your money paid back but if you look at how long you’ll actually take to get you to get paid back it usually varies you know maybe three six months nine months sometimes if you need the money and the bank goes out of business you can’t tap that money until they give it back to you so there’s a little bit of risk there even if it’s fdic insured now synchrony
Bank actually has a highest savings rate right now at one point oh five percent when i first looked at the bangles i what the heck is synchrony i kinda remember they actually issue a lot of the credit cards from like amazon amazon uses synchrony bank as the credit card issuer and as well as a lot of the retail stores that has their own store branded credit cards is
Actually synchrony bank so it’s a pretty big bank pretty respectable so you know i have a good feeling that you know they may not go out of business too easily i actually have a synchrony bank and and i’m actually currently earning a 1.0 five percent interest rate in that today is july 2016 you know it may change as an interest rate changes but usually they follow
The interest rate if it goes up higher their interest rate will go up higher now i haven’t had a li bank i’m sure it’s pretty good as well but you know if you’re starting to get a new account why would you get something a little less right just go with the synchrony bank and get as much as you can is the difference between when you put in ten thousand dollars do
You want a hundred and five dollars or do you want a hundred dollars per year i also have a discover of my savings account and i’ve had this for a like a really long time and i’ve been getting good interest on in point nine five percent every $10,000 you put in you get ninety five dollars now back to the point of these banks having savings account that are 0.01 or
0.02 it’s kind of like robbery it’s really annoying to me that people would actually go and sign up for these accounts and let the bank take their money away from them just because they don’t know any better or maybe they’re lazy of getting one of these online accounts to maximize their their savings so leaving your money in there and not earning the hundred dollars
It’s kind of like losing a hundred dollars a year now the way to think about this to get you to sign up for one of these online accounting earn a lot more interest is that the sooner you do it the more interest you’re going to get this is only for one year right imagine if you did this 10 years ago right you’re always on the lookout for a highest savings rate you
Did this a long time ago and you’ve been getting $100 extra a year so 10 years ago if you had $10,000 in there and you waited 10 years you would have had a thousand dollars just from doing nothing so the earlier you switch to a high interest rate yielding account the earlier you’re going to earn more interest and the thing is this is not just a one-year thing this
Is not just a single bonus some of these things have sign-on bonuses or order i’m not going to talk about those because they change all the time the earlier you do it the longer time you have to accumulate the interest this is a yearly free money here every year you’re going to get $100 free for doing nothing now if you do it today you can start spending that money
Every year doing whatever you could just save it or whatever you see my point here the last thing i want to cover is a savings account holds your cash it may be obvious but you need a savings account to hold cash so that you can use it anytime you want you don’t want to put it in something that’s slightly less liquid such as the stock market or something because
If you do that and the smoke market goes down and you end up needing to use it maybe you need to put a roof some remodeling or something then you actually have to withdraw from the stock market account and if it happens to dips a little bit then you have to withdraw from that account which forces you to take a loss so there’s some argument about holding cash like
Cold hard cash not in any other forms the really close relative of a savings account is that you might deal with cds certificate of deposits a lot of times at the big banks the cd rate is terrible now cds when you actually buy it you have to put money into it and you have to wait a certain amount of time three months six months nine months one year two year five
Year ten years you know some period of time usually the longer period of time the more interest rate you get bank of america has a cd of 0.07% if you put it in for one year now you might want to ask yourself why the heck do i want to lock my money in there for one whole year and you can’t take it out you can take it out with a penalty but yes it’s a little bit more
Than these guys you know maybe twice as much but it’s pales in comparison to what you can get at an online account now the online account is a lot more liquid than a cd you can take money out put money in anytime and you will not get a penalty whereas on these big bank cd’s you would actually get a 3-month penalty if you do an early withdrawal a lot of times when
You put money in and it’s in there for one whole year for myself i really don’t know how much i’ll need you know 11 months from now you know things happen and sometimes you just need the money you put it in there for one year and you think you won’t touch it but 11 months in you’re like crap i need to buy a refrigerator and then you end up going ah crap i’ll just
Take that penalty three months penalty and on the $10,000 cd at 0.07% that’s seven dollars you just have to pay i don’t know like two dollars penalty it’s like the interest is so little that the penalty is even smaller so looking at another cd chase has a cd for ten years at one point oh five percent now this is a really really ridiculous here because you put it in
For ten years and you get one point oh five percent now look at it right here is one point one five percent has incurred ebay i can i can put money in take money out anytime i want and will not get locked into ten years ten years is a long time like you know a lot can happen in ten years i’m just putting this here to show what a terrible deal this is and actually
People you know people buy this stuff if they don’t know about these online savings account that yields high savings rate idea is you can have your money liquid depending on where you put it and you don’t even need to put it in a cd so that’s all for today i hope this was useful if you have some money parked in a big bank getting like 0.01% point oh three percent
Interest rate i urge you please please go down in the video description below check out the links i’m not sponsored by you know those banks or anything those online banks and get yourself a you know high-yielding savings account plop your money in there and be done with it do it as early as you can because the sooner you do it the more money you’re gonna earn
Don’t forget to give me a like over here comment down below and let me know what interest rate you’re currently getting and don’t forget to subscribe over here thanks for watching
Transcribed from video
Get Maximum Interest Savings Account | BeatTheBush By BeatTheBush