A great way to earn extra money due to interest would be opening an Online Savings Account. Online compared to Brick and Mortar Banks is extremely lucrative (comparison below). The accounts are developed to “piggy-back” onto your original checking account. The concept is great, because if you need the money you can simply transfer it back into the savings account. Keep in mind some if not all have transfer limits monthly. Other than the tremendous interest opportunity some OSAs are easy to open with Minimum Opening Value, No Minimum Balances, and No Monthly Fees.
How Much Can I Earn?
Your current checking account pays nearly nothing most likely. I know for sure my Bank of America savings is .02 percent While my FNBO Direct earns a nice 5.05 percent. Let’s conduct a little interest experiment between $50 contributions with 5.0% and .20 %
I know $50 a month isn’t much, but a penny saved is a penny earned! The money will add up take a look…
- 5.00 % and $50.00 contributions for one year = $613.94
- Bank of America at 0.20% and $50.00 contributions = $600.55
- Total difference between Bank of America and 5.00% = $13.39
- Increased with 200 monthly at 5.0% for a year = $2455.89
As you can see to be the largest bank in the world their interest is horrible. Now they do have interest savings account much higher (2-4%) but these accounts are minimum of thousands of dollars. Take my advice and open a OSA today.
Here is a small compiled list of popular Online Savings Accounts/Banks.
5.05% APY, $1 to open, No Monthly Minimum Balance.
4.75% APY, $1 to open, No Monthly Minimum Balance.
4.50% APY, $1 to open, No Monthly Minimum Balance.
4.30% APY, $1 to open, No Monthly Minimum Balance.
Incentive – $25 Account Opening Bonus
Do you know of more that should be added? Comment on this, and I’ll update.