Your rainy day fund can probably be earning more than it is now. With a tiny bit of effort, you can find a savings account that will actually earn you $.

An important point about savings accounts really don’t earn you a lot. They actually earn you less than inflation. Inflation is usually between 1% and 3%. So if you think about it (or let me do the thinking for you), if your interest rate is below inflation you are basically losing money. The clothes you want to buy are getting 2% more expensive each year but your saved money is only worth .03% more — see the issue? You’re better off actually investing but if you’re lazy (like me) or saving for something big/imminent (like me – graduate school) then you can at least minimize how much you’re losing in value by upgrading your savings account.

I used .03% in that example because that is the interest rate I had with my Bank of America account. I thought I was ~wise~ and ~efficient~ because I had a checking account, savings account, and credit card all through BofA. They get ya because they offer an increase in your points back on your credit card based on having a certain level of savings. Turns out it was definitely not worth it, especially when there are better cards (cough cough Chase Sapphire) for points. Don’t be afraid to have accounts in different banks. You can keep them all tracked in one place through apps like Mint (post on Mint coming soon – I’m obsessed). I’m still kicking myself for all the money I didn’t earn by keeping that account for so long #opportunitycost #economics.

I currently use a Capital One savings account. It started at 1% back which is over 33 TIMES more than I was making before. Since I got this account, my interest rate has been bumped up several times without me doing anything besides contributing money. I’m currently making 1.4% which is a lot closer to the current rate of inflation (2.38%) than my original .03% with another increase to 1.5% coming soon.

finding out my new account was 33x better

There’s plenty of websites telling you what accounts are best, but I would just make sure in your research you’re validating that the banks are legit and there aren’t any fees. You can look at both money market and savings accounts as long as you are really only looking to get short term earnings. I’m here to convince you that you should be checking the interest rate for your savings account and trying to switch to a better one but there’s tons of actually intelligent and well researched other articles telling you which accounts are best.  Here’s a few links to sites with stats & reviews:




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