Thanks For The $18,000 In “Free Money,” Jerome!
Is the “war” finally over?
For years, with low interest rates and even the threat of NEGATIVE interest rates, savers were screwed.
If you piled money into a bank account for 30 or 40 years of your life… and you were looking to earn interest on that cash… too bad!
Over the past 10 years that’s been the case… there was a “war on savers”…
Today, I’m happy to announce that the war is cooling down… and high-yield savings accounts are warming up!
Before I get to the good stuff, I want to make sure we’re on the same page…
I’m NOT talking about certificates of deposit (CDs) here.
If you’re able to lock up some cash for a year or five, then you’ll still find some high yield options out there with CDs.
However, for years if you wanted your liquid, easy-to-move cash to earn interest, there wasn’t a viable option.
High-yield savings accounts are popping up across the country with interest rates we haven’t seen in a decade. It’s all thanks to Jerome Powell and the Federal Reserve for finally raising rates now that the economy is fully recovered from the financial crisis.
And we saw the most recent tick higher just yesterday!
“Our economy is strong… These rates remain low, and my colleagues and I believe that this gradual returning to normal is helping to sustain this strong economy,” Fed Chairman Jerome Powell said last week.
Allow me to interpret…
When the Fed Chairman says “returning to normal” he’s simply saying that interest rates are going to continue to head higher. And that’s coming right from the horse’s mouth!
Now don’t get me wrong, we’re not talking about hitting the mother lode here. But instead of looking at “0.04%” interest… we’re finally seeing some online savings accounts pay closer to 2%.
That’s great news for savers — but here’s the fine print…
You will NOT find these generous rates in your regular brick and mortar bank account. Bank of America, Chase and Wells Fargo (and other traditional banks) aren’t jumping to give out cash.
Take a look at this chart from Goldman Sachs:
The graphic above makes the point pretty clearly.
If you want to earn interest on your money, you need to start looking beyond your bank!
With that said, I dug in and hunted for a list of favorites — with the best yield!
Here are the three best high-yield savings accounts that should be on your radar…
The THREE Best High-Yield Savings Accounts For 2018:
(These are all FDIC insured and backed by some of the largest financial firms in the world. We have no financial affiliate with any of them. This list is just for information purposes.)
Marcus by Goldman Sachs — You can start an online account with “Marcus” and start earning 1.9% annual percentage.
Synchrony — Another easy-to-open and flexible account is Synchrony with a 1.85% APY.
American Express Personal Savings — Most people know Amex as a credit card company, but recently they’ve gone big in the online savings arena. Today you can collect a 1.80% APY with their personal savings account.
If you’ve got $1,000 in your savings account, this probably isn’t worth your time.
However, if you’re like many hard-working, long-saving American’s out there… if you’ve got a decent chunk of change that you need to keep safe… the savings accounts above are worth a look!
If you’ve saved $100,000, you’d be looking at an extra $1,800 per year in interest.
And if you’re smart enough to have saved over $1 million for your nest egg, you could be looking at an extra $18,000 per year.
That’s “free money” if you know where to look.
Oh, and one more thing! As long as interest rates keep rising, the accounts above should continue to head higher, too.
Unlike a CD or a bond coupon payment, these rates can — and will — go up as interest rates rise.
Publisher, The Daily Edge