How to Find a Good Savings Account

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So you’re not looking to aggressively grow that amount of cash, just to preserve it.

In your broader portfolio, you are looking to grow your money buy buying stocks, bonds, real-estate and other assets.

The economy keeps growing and so do prices, so you need to grow your money at least above the rate of inflation. Plus, big moments like sending a kid to college or making a down payment on a house means you need to be comfortable withdrawing that large chunk of cash. Build that cash up through your investments.

But most people like to have some cash that’s not really invested so that some portion of their capital is protected from the wild swings of the stock market and corporate credit ratings. Government bonds are great, but so is pure cash in a savings account that can be easily accessed.

You get some interest on your savings.

Usually, that interest rate is lower than the inflation rate, but hey, it’s better than nothing.

But there are some savings accounts that offer interest on deposits of 1% or more. You may walk by windows of banks on the street and see 1.5%. Inflation ran at around 1.6% recently for a sustained stretch of time, so 1.5% isn’t bad.

Here’s the point: do your homework. Find a higher yielding savings account. They’re out there. You just want as much yield as you can get for your largely idle cash.

Now go invest. 

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