Savings Accounts

Everyone knows that a savings account pays you interest. What some people might not know though is that savings accounts only make you a little bit of money. We are going to show you how to use the money that you are saving to make you even more money.

Most banks offer Money Market Savings (MMS) Accounts. These MMS Accounts typically have higher interest rates than regular savings accounts do, although sometimes you might have a few more restrictions on accessing your money. Sometimes accounts are limited to a certain number of transfers a month. From what I can tell this number is usually 6 a month, so just make sure that you plan well. My savings account with Bank of America has a 0.20% interest rate, and my MMS Account with Bank of America has a 0.35% interest rate. Sounds like a deal right?

Now, to take this a step farther, you can now get a MMS Account from an online only bank. Online only banks have higher interest rates due to the bank not having to pay for buildings and people to staff the buildings. We just signed up for a MMS Account with a 5.16% interest rate through GMAC Bank, which is 4.7% more than my money market that I had through Bank of America. So, we will figure that you put $5,000 into each of these money market accounts today, and didn’t touch it for ten years. With the MMS Account from Bank of America you would have $5,178. However, the account from GMAC Bank, you would have $8,276 at the end of the ten years. That is $3,098 more than the Bank of America account. Why would anyone in their right mind not chose this?

Bankaholic offers you the ability to compare interest rates from different banks to see what works best for you.

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