Make Sure Your Cash Works as Hard as You Do
by Stacy Francis, CFP®, CDFA
Not ready to put your cash in the stock market? Feeling like you are not getting anywhere making 0% on your extra dough? We have the answer for you.
One of the easiest ways to get higher interest rates on your checking and savings is to do your banking online. You need to make sure that you use a bank or brokerage firm whose name you recognize. Also, make sure the accounts are FDIC insured. What does FDIC insurance do for you? A lot – so listen up.
Established by the federal government in 1933, after the bank failures of the Great Depression, the FDIC guarantees deposits in banks and thrift institutions for up to $100,000 per depositor per bank. If the bank fails, the government will protect your money up to the established limits. So make sure the bank accounts you stash your cash in are FDIC insured.
Savvy Ladies’ Tip: One of the highest paying savings accounts is 0.75% offered by Capital One and Ally Bank. Another great resource for finding the best interest rates is at BankRate. The site has a great tool for comparing rates.
Stacy Francis is president and CEO of Francis Financial, Inc., a fee-only wealth management practice dedicated to investment advisory services for women, couples and those experiencing divorce. She is also the founder of Savvy Ladies®, a nonprofit organization that educates and empowers women to take control of their finances.