It's Valentine's Day, or close to Valentine's Day and you are thinking about going out to eat with your significant other and wining and dining him or her with a nice, classy meal. The cost of such a meal is probably in the $200 - $300 range. For some, that's not a lot of money, for others, it might be the entertainment budget for the month, or for several months. So, how can you get the bank to pay for such a meal so that none, or almost none of the bill comes out of your own pocket? It's easy. Switch your money to an account that pays a decent interest rate when compared to the national average. Doing so can help you earn hundreds of extra dollars per year at no additional risk.
Right now, if you are like 80% of the individuals in this country, your extra cash is parked in a savings or CD account at a big bank, earning close to 0%. The average savings account rate according to BestCashCow is 0.13% APY. The rates from bigger banks are closed to 0.05% APY. In essence, the bank is paying you nothing for keeping your money there.
But there are banks that will pay over 7X the national average to deposit your money with them. According to the BestCashCow savings rate tables, the top online savings account rate is 1.00% APY. If you have $30,000 in your cash savings accounts, and you move this over to a higher paying account, the BestCashCow Savings Booster Calculator shows that you would earn approximately $182 after-tax dollars per year. Over ten years, that difference in what you would save by moving your money accumulates to $2,197. That's a lot of nice Valentine's Day meals.
In this example, the bank offering 1% APY is FDIC insured, meaning that you take no additional risk moving your money to the bank.
Take that extra cash you have set aside and put it to work. Opening an account online or at a physical branch takes less than 1 hour. It might one of the most lucrative hours you spend in a while.
There is competition for your money and some banks are willing and ready to pay you more. And in the process, impress your Valentine by showing him or her that you know how to grow your money the easy way.
Have a Happy Valentine's Day!