That Interest Rate is a JOKE!

Am I the only one who's looked at a bank statement only to find an interest payment in the amount of 8 cents or lower? What a joke! Not cool bank, not cool! 😒😒

Say you've established an emergency fund and have it sitting in a checking/savings account. Generally, these accounts earn little to no interest. Once you've saved a decent amount, maybe you're ready to start earning some interest. 

First, you want to start by doing a little research. A great place to begin would be with your current bank; find out if your bank offers high yield savings accounts or if another bank would be worthy of your time. Money Market Accounts are also more likely to pay higher interest rates so check into those too. 

Keep in mind is that often the high yield (high interest) accounts come with a number of requirements that you must meet in order to have monthly fees waived. This is extremely important because even if you're earning more in interest, you could be losing it in fees. 

Other things to be mindful of as you are comparing bank accounts:

• Direct deposit requirements - Some accounts require a minimum monthly direct deposit to waive monthly maintenance fees. This is common with checking accounts.
• Minimum Balance requirements - Some bank accounts will require you to maintain a minimum balance to earn interests. If you do not have the minimum or do not believe you'll be able to maintain the minimum, wait until you have saved more. 
• Varying interest rates - Be sure to read the small print. Sometimes an account will advertise a high-interest rate (APY - annual percentage rate) but only for accounts that maintain a minimum balance. They may offer a lower rate for lower balances. For example, an account may be able to earn 2.5% with a balance of over $10,000 but only 1% if the balance is lower (you may decide it's not worth your time). 
• A minimum number of debit transactions - Yes, I've seen this before. Again, depending on the bank and the account there may be a requirement to make x number of transactions a month to waive fees. 
• FDIC Insured - If it sounds too good to be true, it probably is. Be careful where you put your money. Check to see if the bank is FDIC Insured (protects certain accounts up to $250,000). According to FDIC.gov, "The FDIC protects depositors of insured banks located in the United States against the loss of their deposits if an insured bank fails."

A high-yield checking or savings account is not going to make you rich, but it can easily turn the cents you were earning into dollars. Of course, the higher your balance, the more interest you can earn (compounding interest anyone $$👀?). The goal here is to take advantage of what is available to you instead of settling for no interest or laughable rates.

There are many vehicles that can help you grow your money and you'll really want to do your research to find the right one for you.