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It’s easy to tell someone how to do something, it’s a whole other animal applying it yourself.  I can crunch numbers with the best of them but over the years I have not practiced what I preached.  So, this past week I opened a Christmas Club Account.  Remember those from way back when?  They are great for saving money.  You open the account and the funds are not available until November 1st of the year.  (You can withdrawal for a penalty early in case of an emergency; but the idea is to try your best not too) You only need $10 to start!  You get a coupon book to make monthly payments or weekly if you wish.  The interest you earn isn’t much .25% but this is better than nothing.

 

Another great option is opening an online savings account.  They pay higher interest rates and it’s less tempting to waltz into the bank and withdrawal all your hard-earned cash.  I was surprised to find one of the highest paying accounts was at American Express!  They pay an annual percentage yield of 1.25% on a personal savings account.  This is actually very good right now, considering some Certificate of Deposit Accounts are less.  There is no minimum balance required to open.  When it comes to savings it’s great if you can afford to put 10% of your paycheck into your savings.  However, a lot of us are unable to do this starting out.  Even if this is your situation a little is better than nothing, and it can really add up over time.  For instance, if you open your account with $100 deposit and save $20 a week over a five-year period in this American Express Savings you would save $4,976!  The interest would add to $156.00; which is free money if you think about it.

 

Discover is very competitive as well.  They pay 1.20% APY with no minimum balance or monthly fees.  The interest you earn is a tad less so it depends on what bank you prefer at this point and options they offer.  Be aware that all savings accounts with all Financial Institutions are regulated by Regulation D by the Federal Reserve.  This means that you are allowed 6 withdrawals or/and transfers per month without penalty.  (This does not include deposits) Whichever you decide to go with start NOW!  I wish I would have done this years ago; but today is anew and it’s time to save!

REFERENCE:

American Express: https://personalsavings.americanexpress.com

Discover: https://www.discover.com/online-banking/savings-account/