Saving money. Everyone is thinking about it. Whether it’s cutting back on small expenditures, putting off big ones or simply squirreling away a little from each paycheck, most Americans are trying to build a soft cushion to catch themselves in hard times.
Tucking that extra something away in a bank savings account may be the most traditional route, but it’s not necessarily the smartest, said Bankrate.com senior financial analyst Greg McBride. Most banks barely approach 1 percent interest rates on savings accounts, and many don’t even come close to that.
As people look for ways to maximize their effort, more are turning to online savings accounts, where interest yield rates are well below what they’ve been, but still substantially better than brick and mortar banking institutions.
” Letting savings pile up in a savings account or checking account at the big bank on the corner isn’t going to cut it,” McBride said. “But seeking out a top yielding savings account will give you