How to Steer Clear of the Biggest Pitfall in Managing Your Savings
Managing your savings can be tricky with so many banks and account types to choose from. It’s easy to feel overwhelmed when deciding where to put your money.
A common mistake people make is not opting for a high-yield savings account, which can cost you a lot in potential earnings. The national average interest rate for savings accounts is currently 0.46% APY, according to the FDIC. This rate won’t help you grow your savings much.
In contrast, the My Banking Direct High Yield Savings Account offers a 5.55% APY, which is over 12 times the national average. This means significantly higher interest earnings regardless of your account balance.
Choosing a new bank is a big decision. Here’s what you can gain by putting your savings in a My Banking Direct High Yield Savings Account:
1. **Competitive Rates**: The account offers a 5.55% APY, much higher than the national average.
2. **FDIC Insurance**: Your money is insured up to $250,000 per depositor, ensuring your savings are protected.
3. **Financial Stability**: My Banking Direct is backed by Flagstar Bank, N.A., a well-established bank with $113.9 billion in assets as of December 31, 2023.
4. **Convenient Mobile App**: The Flagstar Mobile Banking app allows you to manage your account from anywhere, with features like balance checks, security options, alerts, bill pay, Zelle, and mobile check deposit.
5. **Live Customer Service**: You can talk to a banker seven days a week, ensuring you always have access to help.
6. **No Monthly Fees**: There are no maintenance fees for this account.
7. **Low Minimum Deposit**: You only need $500 to open an account.
Maximizing interest earnings is the main reason to choose a high-yield savings account. For example, with $1,000 in a traditional savings account at 0.46% APY, you’d earn $4.61 in a year. In a My Banking Direct High Yield Savings Account, you’d earn $57.06 in the same period. Over ten years, $10,000 in a traditional account would earn $470.74, while the same amount in a high-yield account would earn $7,418.67.
The difference is clear: choosing the right savings account can significantly increase your earnings.
If you’re ready to start earning more interest, opening a My Banking Direct High Yield Savings Account is easy. Just fill out an online application, and you’ll be set up quickly. Start now and see how much more you could be earning.