The Back Pocket
High Interest Savings Accounts
There are a lot of ways to save for retirement, and your company may have some solutions for you. This isn’t always enough, and many people need a back up plan. Jobs are not as secure as they once were, and people know it. It used to be that you worked for one company your whole life, and then collected your retirement. This is more a rarity than it is a certainty today, and it is in your best interest to take care of things yourself. One safe place to keep your money is in a high interest savings account.
A high interest savings account is a good option if you don’t like risk, but would like to see some return on your money. The stock market can bring about great gains in little time, but you can also lose everything in the blink of an eye. If you have a high interest savings account, it will take a while for the interest to add up, but your money is pretty secure. The FDIC insures most banks. This means that if the bank somehow loses the money in your high interest savings account, you can recover your money up to the limit set by the FDIC.
It is in your interest to learn what this number is, and to move money around if you go over that amount. If you want a high interest savings account, you need to go into your bank and talk to a financial planner or someone who can help you decide what to do with your money. All banks have these people. They just have different titles, depending on the bank. A high interest savings account will require, in almost all cases, you to have a minimum balance in that savings account. You can start out with a regular account, and when your balance meets that minimum requirement, you can switch to a high interest savings account. If you don’t make a lot of money, you don’t want to take a lot of risk. This is up to you, of course, but those who don’t have a lot to throw around try to be cautious. You can find security in a high interest savings account, but remember the earnings won’t be huge. Take advantage of any savings plans you may have through your work, and also try some other types of accounts if you find you have more to save as time goes on.
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