Many thanks to the Detroit Free Press, where I first saw this topic. The key, as the song says is to “Accentuate the positive and eliminate the negative.” Let’s start with the positive.
CD’s: The average yield for a CD or certificate of deposit, basically a fancy savings account that earns interest, is just .59 percent. BUT, as interest rates go up, some banks are starting to advertise CD rates of 2.35 to 2.75 percent instead. Much better.
Savings accounts: Some regular savings accounts are also offering better interest rates on your deposits. Close to 2 percent in some cases, according to bankrate.com. I will link you to Bankrate’s list of top savings accounts from EasyMoneyShow.com/61.
Checking accounts: There are even checking accounts that pay as much as 3 percent interest or a cash bonus for opening account. Nerd Wallet has a good list of those and, once again, I’ve got that for you at EasyMoneyShow.com/61.
Now, let’s talk about eliminating the negative:
Checking account fees. The best way to sidestep checking account fees is to open a checking account at a credit union. 82 percent of large credit unions offer free checking. Bankrate has the report. Trust me when I say that ANYONE can join a credit union. There’s no secret handshake. Just go to FindACreditUnion.com and enter some basic information to find one you are eligible for.
Overdraft fees: And finally, speaking of negatives, let’s talk overdraft fees. Many consumers have unwittingly opted in to a system where if they overdraw their account, the bank covers it, but charges them a fat overdraft fee. One option is to opt out again. This means your debit card could be declined at the register, when you go to pay for something, but maybe iff you knew you were going to incur hefty fees, you’d rather pay cash for that coffee and you have the money on you. Or you might decide to skip the $5 coffee to avoid the $35 fee. One more tip: Sign up for text alerts on your phone that tell you where your account stands.
Avoid fees and seek out decent interest payments, and you can actually make money off of a CD, savings or checking account.