Save Money for Future, Allowing It to Grow in a Good Savings Account
Posted by Cassandra Parker on July 12, 2008
Using a savings account, that does not pay you more than 3-4% interest, is waste of time and money. What I wanted to mean by “a good savings account” is simply the financial organization that allows you to grow your money in a more effective way. Hence it should provide you with better APY.
Just imagine how much your money could have grown, if you had invested in a savings a/c that pays you 4% interest instead of 0.5%. As its a matter of compound interest, so your money would have grown much more with 4%.
Saving money for future. But will this allow my money to grow?
But be careful. APY can be tricky. If you want to calculate APY, here’s the equation:
APY=POWER((1+(A/B)),B)-1, where A is the Rate and B is compounding frequency.
So don’t waste any more time. Find the best APY. Switch to a a/c that pays more interest. Find a high-yield savings account, money market fund, or CD.
I have figured out few characteristics of a good savings a/c:
- Highly competitive interest rates or APY.
- No minimum balance
- No fees.
- Availability of ATM counters
- FDIC insurance
Another thing I want to point out. ‘Savings within personal finance refers to the accumulated money put aside by saving.’ So it is better to bank with those checking accounts, that allow your money to work for you in the market. As an example E*Trade Max-Rate Checking Account (2.9% APY on accounts over $5K) or an HSBC Online Payment Account (2.25% APY, open an account with as little as $1) etc.
These are the ways you can manage your financial situation. Before opening an a/c, you must prepare a comparative list of all the facilities (APY etc), offered by different banks.
Wish you all the best. 
