SERIES: Top 5 Ways To Save Money WITHOUT Selling Anything 4

In a terrible economy, it is high time that the I Was Broke. Now I’m Not. team deliver ways to save money!  This five part series will share the top five ways that we see people saving lots of money.

I believe that if you apply these five items, you will save over $1,000 a year.  Don’t believe me?  Try them out!

Part Four On-Line Savings Accounts

Do you have money in your savings account?  If not, it should by your TOP PRIORITY.  $1,000 as a minimum or $2,500 if you have kids or a house.  I repeat – this should be your TOP PRIORITY!

For those with money in savings, how much interest is your bank paying you?  If it is a local bank, it is likely that the interest rate is very, very, very low (close to 0%).  On-line banks pay much higher interest because they do not have to pay the costs of maintaining local branches (people, buildings, etc).  These on-line banks pay around 5X – 8X the national savings interest rates of other banks.  I hold all of my savings in on-line banks and have done so for over two years now.  They are FDIC-insured and are very easy to use.

There are several excellent on-line banks. Click HERE to see the on-line banks I use or recommend.

The bottom line is that your money should make you money – the most money possible.  My on-line banks allow me to do that for all money that I plan on using within the next five years.

Read entire series

1 Comment

  1. Jeff Plain on March 19, 2009 at 7:53 am

    Wish I had listened sooner. Savings sat stagnant in a BOA Savings account paying 2/10ths of 1% interest. After reading your blog and getting a nudge from I moved my most of my savings into an online Savings Account with E*Trade paying 3.01% interest. The impact will be about $1,200 more interest this year.

    As Dave Ramsey would say, I paid the stupid tax for the past year.

    I’ve also set it up to automatically draft $100/week from my BOA checking to my E*Trade savings. My savings account goes up and I don’t miss the $100 a week.

    Paying myself first, after tithing of course!

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