Do you wish money would freely rain into your bank account?
Use this strategy and it will.
High Yield Savings Account
These are banks that exist solely online meaning there is no in-person branch to visit. Based on my research, here are the two top options as of 8/2023:
Ally Bank which is paying 4.25% and CIT Bank which is paying 4.65% for Savings Connect ($100 minimum) or 5.05% for Platinum Savings ($5,000 or more).
While the large banks (Wells Fargo, Bank of America, Chase) pay 0.01-0.25%.
On $1,000 in savings this is the difference between getting $50 (5%) in free money or $2.50 (0.25%) which is a $47.50 difference.
If you have yet to open a high yield savings account, you are missing out on free money. As of 8/2023, my husband and I have earned over $3,000 in interest with Ally Bank this year doing absolutely nothing.
Why do I use Ally Bank when CIT Bank pays more?
First off, Ally Bank is my only bank account. I do not have a traditional brick & mortar bank like Bank of America.
Ally bank:
1. Allows me to open all of my accounts in our trust
- This is an important financial move when you have a child as there are clear instructions on what happens when we die and she will get access to all of our money immediately.
2. Has no restrictions on Zelle transfers
- CIT caps @$300 a day but my preschool payment via Zelle is $1850.
3. Has checks
- I struggle with the fact that there are still vendors that do not have a peer2peer payment system (i.e. Venmo or Cashapp) but one of my service providers only accepts cash or check. I don´t always have cash and want a record of my payment which checks provide.
- CIT Bank does not have checks
I would open a savings account at CIT while continuing to use Ally as my main bank but since they don´t have a trust option, it is not worth the 0.85% trade off.
If I was GenZ, I would put my savings in CIT while keeping your existing bank since you probably don´t have a kid & a trust account to worry about.
If you are struggling to implement these money moves, we need to work together.
Here are your options:
Join my Financially Empowered Bootcamp with weekly coaching sessions to get all of your questions answered and support in implementing the money systems that will allow you to make money doing nothing and to start using your money in a way that will allow you to realize your dreams.
Work with me one-on-one for a specific money topic or budget work.
Or you could continue to do what your doing and get the same results you are getting now. If you want something different, you need to do something different and working with a money expert (me!) is the best way to change your financial trajectory and speed up your results.
Disclaimer: I am an educator, not your personal financial advisor. Information in this newsletter is intended for educational purposes only. Please make sure to do your own research before moving forward with any actions discussed in this newsletter.
Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won’t experience any loss when investing. Past performance does not guarantee future performance. Always remember to make smart decisions and do your own research!