Get a High Interest Savings Account
Saving money is your first step towards building wealth, but once you save it, what do you do with it? Should you continue stuffing it in your mattress or in a coffee can in the kitchen?
First pay off your debt
First, before you begin storing your money, you need to pay off all your debt. The only debt you can continue to owe is your mortgage. Other than that, you need to pay off all credit card debt, car loans, student loans, etc. as soon as possible.
Once you’ve paid off all your debt, you’ll need to save an emergency fund.
Your goal should always be to earn money from your money.
Retirement money should be invested. You should have a 401K, IRA, or some other investment account set up. Other than that, you’ll first need an emergency fund, and then any other short term savings goals. This money should be stored in a high interest savings account.
Save your money with ING Direct
There are several online bank accounts out there. Some have higher interest rates than others. I have been using ING Direct for the past few years and have had experiences with others. I much prefer ING Direct.
Sometimes other banks will have higher interest rates, but with each bank having a variable rate, even if ING has a lower rate today, tomorrow the other bank will probably follow. I have seen other banks boast their higher rate only to see them go down in a month or ING go up. The truth is, the extra .5% is rarely worth the risk.
ING transfers money very quickly. When you transfer your money, it shows up in your account in a few days. I have had experiences with banks such as Capital One that don’t post the money for over a week. That would not make me fee very comfortable. Where is the money for that week? It’s not posted in your checking account or savings account so who’s to say it will show up again? I feel much more comfortable with ING Direct.
ING has also been around for a while with no problems. They survived just fine when many other banks were failing, and they still have millions of happy customers. There rate is always much higher than any brick and mortar bank and most importantly, they are FDIC insured.
I also love that you can have several different accounts. They are all listed with your own nicknames right in a row in your account. You can have an account for your emergency fund, vacation fund, car fund, or anything else. It is very simple and easy to set up another account. It takes seconds.
You can also buy Certificates of Deposit (CDs) very easily through ING and get a great rate. If you don’t have an ING Direct high interest savings account, you are missing out. In order to make the most of your money, sign up today!
The Orange Savings Account. Great rates, no fees, no minimums.