The Federal Reserves efforts to stimulate the economy have driven interest rates to rock bottom; that means that savings rates are also near rock bottom. Traditional banks offer a lot of security to savers, but they pay such minimal interest, it can be difficult to save. Banks do offer a number of options for saving, and by laddering your efforts, you can take advantage of higher rates and still have flexibility in accessing your money.
Admittedly, earning a quarter or half of a percent in interest is not very exciting…but it beats just getting a penny. Because with the standard savings account, a penny saved is still just a penny.
About The Author:
Jonathan Bastian is a police officer in Lexington, Kentucky. He is a noted author on thermal imaging technology, but has a passion for personal finance and helping people spend money wisely. He has a bachelor’s degree in business economics and international relations (commerce emphasis), and paid for several Spring Break trips by “buying low and selling high.” He is still a cop by trade, so his suggestions and comments are not intended as formal tax, financial or accounting advice. Consult paid professionals if you need formal guidance.