Savings / Checking / CD Accounts

It is amazing how much money you can save - and make - simply by having your money in the right kind of account. Sit down with the Sunday paper one day and make out a chart. List each bank in your area and see what they offer for savings and checking accounts. Just by changing bank accounts you could easily make more interest than you are now. Many banks offer incentive bonusses for switching - a free $25 or $50.

Check online too. I had an account with ETrade for a long while. I did everything online. There was really no need for a local bank.

You don't need a ton of money for this to make a difference. Say that your local bank charges you $10/month for your account. If you simply switch to another bank with NO monthly fee, that is $120/year! That's a nice chunk of change for doing pretty much nothing at all.

Look into short term CDs. A CD is in essence a locked-in savings account. You put your money into the CD for say 3 months and you are guaranteed a high interest rate for that time period. Then when it's over, you can put your money into a new CD or do something else with it. The downside is that you get penalized if you take your money out before that time period is up. You *can* do it of course, you just lose your earnings. I personally love 7 day CDs. That way it's only locked up for 7 days, but you still get a great return rate on your money.

Frugal Living Tips