A very wise person once said, "Work hard for your money, then let your money work hard for you". It goes without saying, that one of the paths to financial well-being or financial independence is the ability to invest your money for a profitable return. But, what if we are risk adverse? What options do we have? The answer is high rate savings accounts.
If we all know this, then why do so many people not invest their money?
Many people believe that investing is risky and they are not willing to lose what they have worked so hard to accumulate. Also, many people are not savvy when it comes to investing, even when choosing mutual funds, which are touted as being a lower risk investment. So, what happens? They leave their money in a savings account. Well putting your money in a savings account can be a very good idea if you know which bank to put your savings into. Not all accounts are created equal.
Most banks today will give you an APY (annual percentage yield) of less than 2%, however, with some research, you can find banks and other financial institutions, that will pay you considerably more -- up to and over 5%.
A 5% return on your money should not be ignored. Most people lose money investing in stocks -- this week alone, November 5 through November 9, 2007, the DJIA (Dow Jones Industrial Average) has dropped 552.36 points, a loss of 4% in just 5 days and since reaching its trading high in August 2007, the DJIA has shed 1,155.35 points, over 8% down.
If this type of stock market action has you running to the bank to stow away your money, make sure you are going to a financial institution that will pay you at least 4% for your savings and let you money work hard for you.
| Karen M. is an accomplished CPA from PWC (Price Waterhouse Coopers) a worldwide Big 4 CPA firm and is the author of http://www.MsFiscallyFit.com, a resource to help women improve their lives and be more successful through the proper management of their finances, careers and their businesses. If you want to find banks paying high interest on savings accounts, I have put together a list for you. To make it easy for you click this link: high interest savings account. |
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