YOUR MONEY


Make More on Your Savings


3 ways to get a bigger bang for your buck. :: BY DANIELLE BRAFF


I 1


nterest rates are up — with the Federal Reserve’s official rate jumping from 0% to 5.25% from March 2022 to mid-2023 —


and that means you should be getting a higher rate on your savings. And if you aren’t? Now is the time


to move your money elsewhere, like to a high-yield checking or savings account, money market fund, or certificate of deposit (CD). Here’s what to consider:


LIQUIDITY High-yield checking and savings


accounts, as well as money market funds, are all very “liquid.” That means you can withdraw the money at any time. A CD, on the other hand, is a “fixed


investment” requiring you to keep the money invested until maturity, which could be anywhere from three months to five years. If you take it early, you’ll pay a penalty. Generally, the trade-off for this


lack of liquidity is that CDs offer a higher rate of interest — but not always. In fact, many high-yield checking,


savings, and money market accounts offer rates that rival and even surpass CD rates right now. Another drawback to CDs is that


they have a fixed interest rate during their term. By contrast, money market funds, high-yield checking


accounts, and high-yield savings accounts have variable rates that can change frequently.


2


CHECKING FEATURES Do you need to use the


money you’re stashing away to pay bills, either monthly or occasionally? Most high-yield checking


accounts have all the same features as a regular checking account, including FDIC insurance, online banking, bill paying, debit cards, and check writing. So, you can use a high-


yield checking account to replace your current no-interest traditional checking account if you wish, not just as a place to park your savings. But many high-yield checking


accounts have minimum balance requirements. These requirements could be as low as $500, or as high as $25,000. You can expect interest rates that


even approach the level of the 10-year Treasury, if you shop around. For example, as of June,


Presidential Bank was offering an FDIC-insured checking account that yields 4.62%, with requirements including at least $500 in monthly direct deposits and at least seven electronic withdrawals per month,


In June, Citizens was offering a no-fee, FDIC-insured 4.50% savings account with a $1 minimum balance requirement, while Capital One was offering 4% with no minimum balance.


72 NEWSMAX MAXLIFE | SEPTEMBER 2023


such as ATM and bill payments. Check NerdWallet.com and


Bankrate.com for the best yields. Just make sure the account is FDIC- insured, meaning that your money is backstopped up to $250,000 (per depositor per insured bank) if, in the worst-case scenario, the bank goes belly up. On the flip side, high-yield savings


accounts are also liquid and FDIC- insured up to the normal limits — but they don’t offer checking account features, like debit cards, bill payment, etc. Also, they typically have limitations


on the number of withdrawals and transfers you can make per month without incurring fees — for instance, being able to make only six withdrawals in a statement month. And when you do make a transfer, it can take up to 48 hours. In June, Citizens was offering a


no-fee, FDIC-insured 4.50% savings account with a $1 minimum balance requirement, while Capital One


GESREY©ISTOCK


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100