About Savings Accounts

Our entire lives, we’re taught to save, save, save, and many of us obey this rule well, stashing every bit of money we can in our savings accounts. However, while saving is usually a good thing, some savings accounts are not actually smart. In fact, they could be more detrimental to you financially than they are helpful. Check to make sure that you’re not dealing with any of the following “savings account disasters.” If you are, you may want to rethink your saving strategy.  

Disaster #1: Bad Interest Rates

In recent years, it’s become almost impossible to find a bank that offers high interest rates on savings accounts. So, while you shouldn’t expect to get a truly amazing rate, you definitely shouldn’t settle for very little interest, or, even worst yet, no interest. Your best bet for good interest rates, sometimes even higher than one percent, is to check out online savings account options, which tend to be the best in terms of interest.

Disaster #2: ALL Your Extra Money Goes in Savings

As mentioned, stashing money away for life’s little emergencies is smart, but be aware that there are more ways to save money than just putting it in a savings account. For best results, you should be using a diverse range of savings methods. You should have retirement accounts, stocks, and other investment strategies at work for you. Many of these will take your money and multiply it, making “future you” a whole lot happier than he or she would be if you’d stuck to just a standard savings account.

Disaster #3: Savings Accounts with Poor Security

These days, it’s easier for sensitive, personal information to get leaked than ever before- look at what recently happened with the Ashley Madison site hack! If your bank has had security issues and problems in the past, it’s not worth the risk of using that bank any longer; you need to find a different option. If you’re not sure how secure your bank’s online account systems are, ask! Any good bank that’s working hard to keep your data safe will proudly tell you about the security measures it has in place.

Disaster #4: No Convenient Access Options

Good banks are up to date on all the modern trends in banking and make it easy for you to access and control your account information anytime and from anywhere. If your bank is old-fashioned and doesn’t offer online banking, mobile apps, automatic payment features, or other “make-your-life-easier” solutions, then it’s time to look elsewhere.

As you can see, it’s important to demand only the best from your savings account and to use smart saving strategies. If you can do these things, you’ll find that your savings will become a lot more profitable for you both now and in the future.