Wealthy Americans With More than $50k Saved Should Make This Move Now

You may be leaving thousands of dollars on the table.

If you have more than $50,000 at your disposal in a regular savings account yielding 0.56%, you’re leaving money on the table. If that’s the boat you’re in now, you may want to strongly consider a high-yielding savings account — especially one yielding 4%.

Key Points About This Article

• You may be leaving thousands of dollars on the table. If you have more than $50,000 at your disposal in a regular savings account yielding 0.56%, you’re leaving money on the table.
• You could pull in $400 a year. Or, $2,000 a year with $50,000 deposited with a 4% yielding account.
• Ahigh-yield savings account is a great home for your emergency fund, but not your retirement nest egg while you’re building it. ^(Sponsor)

At the moment, the national yield for savings is just 0.56%. That’s about $57 of interest after one year on $10,000. That’s about $285 with $50,000.

That’s not great at all.

However, with some institutions, you could earn as much as 4%. That means instead of earning a paltry $57 on a $10,000 deposit, you could pull in $400 a year. Or, $2,000 a year with $50,000 deposited with a 4% yielding account.

Also, consider this.  If you leave your $50,000 deposit plus $2,000 in interest alone in the second year, you’ll earn even more interest because the interest is calculated on the total amount, which in this case would be $52,000, handing you $2,080. In the third year, you’d receive 4% interest of $54,080 and so on.

That’s much better than just earning a paltry 0.56% on your hard-earned money.

Traditional Savings Accounts Stink, Says Dave Ramsey 

Even finance coach Dave Ramsey will tell you traditional savings accounts stink. That’s because traditional accounts don’t grow much. They average 0.56% at the moment, which means if you put $1,000 into a traditional account, you’ll make $5.60.

Plus, as noted by Ramsey Solutions, “The money you put in is super safe. High-yield savings accounts at legitimate banks—even online banks—are backed by the Federal Deposit Insurance Corporation (FDIC), which insures your deposits up to $250,000 with the backing of the federal government. Legitimate online credit unions are backed by the National Credit Union Administration (NCUA). All those letters simply mean your money’s not going anywhere.”

In addition, “You can access the money at any time. Unlike some investments where it can be difficult to pull your money out at a moment’s notice, high-yield savings accounts allow you to access the money at any time.”

Also, when looking for the best high-yielding savings account to put money into, look for a competitive rate. Some offer 4% at the moment. Two, make sure there are no balance requirements or upfront deposits needed. And you want to make sure the FDIC will insure your money up to $250,000 with the backing of the federal government.