There is one simple switch that could save you hundreds of dollars without needing to do much work.
American customers are quite finicky about where they spend money on products and services these days. One notable exception is the banking industry.
It’s understandable that most people are loyal to their current banks, as people want familiarity and security when it comes to their finances. Not all banks are equal, however. In fact, banks are far from equal to one another when it comes to the benefits of having an account. The easiest way to start keeping more of your hard-earned money is by switching to a high-interest savings account, even if that means moving to another bank and shifting your savings there.
Traditional banks typically pay around 0.1% as a starting interest rate for their savings accounts. In many cases (including at some of the big banks), interest rates on savings accounts with low balances is as low as 0.01%! In the modern banking industry, this is robbery. On the other hand, high-interest savings accounts generally offer more than 2% interest, often times helping you stay on top of inflation instead of letting your savings slowly lose their value. If you want to reorganize your financial life, a high-interest savings account is definitely a good place to start.
According to Business Insider, there are several other benefits that many Americans are reaping through their high-interest savings. When it comes to curbing spending, there is no better way than putting a certain portion of your income aside to sit in a separate account while accruing a good amount of interest. High-interest savings also help you save up for long-term financial goals, like buying a new car. Lastly, they are a great way to prepare for a financial emergency.