As a father and husband, I am always looking for ways to save money when I can. Heck, you never know when the family van will have a tire blow out or when your child will need to have major dental work done. There are just too many “ifs” to not be prepared. I always wanted children, but I wanted to make sure I was in a good financial spot because I did not want them to have to suffer from my poor choices. Though I was not quite where I wanted to be financially, I had children. I have since made sure to step up my game, and I have put us in a better financial spot with the help of my wife.
To help us with our financial success, we started a family savings account, and no one has a debit card to access it. In fact, we put stipulations on the account, so the only way to access it is for both me and my wife to be present. So, we must go into the bank during their business hours. That right there can be a big inconvenience.
Anyways, our savings account continues to grow and now that the interest rates have gone up, we are excited because it will benefit our savings account. Below, I will talk about how it helps our account and you can follow suit too.
We Reap the Savings
Think of it this way – the banks make more money and so do you. I know that it has worked for us, and while our savings account interest rate only went up a fraction of a percent, it still helps. Banks that earn a higher interest rate are going to reward those who have stuck by them with their money there. Banks want your business, and they will do what it takes to make sure that they receive it. Once the rates go up, look for an online savings account that suits you.
Our Money Goes Farther
Your money will go farther than it did before and we learned this quickly. Think about it for a moment. We used to earn 1.05 percent on the money in our savings account, and now we earn 1.5 percent. While it seems small, it isn’t that small when you start to figure out that every dollar you put into your account earns money on top of it.
We Shopped Around
If you are unhappy with your savings account, do what we did and shop around. Prior to the bank we are at now, our savings account netted us a VERY low interest rate – like .05 percent. When the rates started to rise, we looked around and found a bank that was offering a much bigger return on our money, so we went with them. This helps stretch out our savings account, and we now have more money thanks to that small move.
My Two Cents
Higher interest rates are good for your savings accounts because it means that you will earn more money. You will have a better return on your investment. We have learned that it is not always a bad thing when the federal reserve raises the interest rates.