Tuesday, August 9, 2011

The best places to "hide" your money!


Years ago the wisest way to keep your money safe was by burying it in a can somewhere hidden in your house, or perhaps underneath your mattress.  (If your money is currently stowed away between your mattress and boxed spring, I’ll wait for you to go get it out and vow to put it in the bank before reading on.  Go ahead…. I’ll wait.) J
My grandfather was notorious for storing his money (specifically coins) in random places within his home.  I vividly remember being a little girl, and watching him store quarters in his prescription medication bottles in his kitchen.  It was like a treasure hunt, looking through his cabinets and drawers!

After working for a bank myself, I’m far from fearful of the banking industry.  I watched, as money was sheltered while people underwent fires within their homes, robberies, and even unfortunately family deaths.  When everything around them seemed to crumble, at least they didn’t have to be concerned with their money disappearing as well.  I could get them a new debit card, but unfortunately couldn’t replace the cash that was lost.

I understand that in our current economic situation, there is reason for special care, when it comes to placing your money into a financial institution, but I also believe that in order to be a good steward of your money, it is important to do research and find ways to make your money work for you, rather than remain hidden under a mattress.  Here are 2 suggestions, to make your money work for you:

1. High Interest Bearing Accounts – Unfortunately, the standard interest rate for checking and savings accounts are .05% at best.  However, if you look hard enough, there are some accounts that will offer you high interest rates, without mandating an exorbitant amount of fees and restrictions.  One example that we currently use is the CapitalOne Savings account, which offers a 1.1% Interest rate and a quarterly bonus, if you maintain a certain amount in the account.  There are no minimum balances, and no hidden fees associated with the account.   That means that if you needed the money fast, you could get it, and not have to worry about fees that will come with taking out your money! It’s worked well for us, and it may be a good fit for you.  Check it out for yourself, by clicking here.
*FYI - I’ve heard that ING offers a similar deal, if you’re interested!

2. Saving without realizing it – There are a few banks (such as Wells Fargo and Bank of America) that offer you accounts, which are designed to save your money without realizing it.  An example of this is the Way2Save account at Wells Fargo.  Each time you swipe a debit card that is linked to your checking account you’ll have 1 dollar transferred from your checking account into your Way2Save savings account.  That means that if you go to the grocery store, rent a redbox movie, and grab Chinese take-out for dinner on the way home from work, (paying 3 different times with your debit card), you’ll have $3.00 transferred automatically from your checking account into your Way2Save account.  That money will receive a 3.0% interest rate on it.  Bank of America offers another type of account called “Keep the Change” where the remaining “change” from your transaction, rounding up the figure to an even dollar, is deposited into a savings account.  The money you earn on this “savings” during the first 3 months will be matched 100%.
Please keep in mind, for both of these examples that there are some balance restrictions, so make sure you look into that before opening up these accounts!

If you have more, please let us know by emailing us at navigatingtherope@gmail.com or commenting below!  We’d love to share your ideas with others!

No comments:

Post a Comment