So in today’s market, interest rates are rising.
But this doesn’t only mean your cost to borrow money increases.
But do you know what else this means?
Higher rates mean the interest on the money you save has also increased.
In today’s market, they’re over 4%!
I’m getting 4.3% at Wealthfront (referral link).
It’s been years since they were that high. According to Forbes, it may have been since the 1990s. (wow, has it been that long???)
If you are only getting 1% or less in your savings account, you are missing out on free money.
Should you set up a high-yield savings account?
You better believe it!
Only 20% of Americans Take Advantage of High-Interest Rates.
I also recently heard on The Best One Yet Podcast that only one out of five Americans is taking advantage of the higher savings interest rates.
So let’s increase that number.
Don’t be the 80% – lazy and not moving money into savings.
Be in the minority.
For less than an hour of work, you can make an additional $430 per year for free for every $10,000 you move into a savings account.
Make a Six Figure Payrate to Open a Savings Account
Based on today’s rates, you’ll make more than $43 for every $1,000 you have in savings.
That’s $430 for every $10,000 in savings per year.
True Passive Income.
Now I get it.
It takes time, energy, and effort to open a new account and move money over.
But in today’s market, you can do all this in less than 30 minutes.
Then you can forget about it.
That’s $43 for free for every $1,000 that you move. For 30 minutes of work.
That’s more than $80 an hour.
That’s equivalent to you making $160,000 per year in annual income.
That’s the way you have to look at things. You have to look at things in that sort of mindset.
Many Savings Accounts are Paying 4%+
There are several different savings accounts out there that are paying over 4%.
Please choose any of them.
Just make a move!
After research, I settled on using Wealthfront.
I set up my account quickly and easily transferred funds directly from my bank.
Wealthfront also offers up to $3 million of FDIC insurance through partner banks.
How can they make this offer?
I have no idea. The Federal Government (FDIC) currently only offers $250,000 per account.
But after the Silicon Valley Bank fiasco, many banks are promoting offering more coverage.
It appears they do this by spreading money into multiple banking partner accounts, which allows them to provide you additional coverage.
Of course, if your account will be $250,000 or less, you don’t need to worry about this additional coverage anyway – you’re already protected!
Wealthfront is a Part of the Robo-Advisor Game
One of the reasons they offer such a high interest rate is because a percentage of customers will use their investing products.
It’s not required to get the savings rate.
But it’s pretty smart of them.
They can attract customers.
They may be breaking even on the savings account product.
But if they can eventually convert me or other customers to use their robo-investing product, they’ll be set.
Who knows, maybe I’ll use this over time.
Wealthfront Also Offers Extra $$$ For Referrals.
Another cool thing about Wealthfront is you can tell your friends and get rewarded.
If your friend signs up and saves money in a Wealthfront account, then you both get an additional half of 0.5% of interest for six months.
More free money is always pretty cool.
So stop what you’re doing, take action click over and open up a high-yield savings account.
It doesn’t have to be Wealthfront.
Just find one and go for it!
$1,000 in emergency savings is one of my top personal finance rules.
What better way to get started than right now 🙂