I’m always looking for the best ways to make extra money. By far, the best way is to have your money earn more money while you go about your life. Making money without lifting a finger?! Does it get any better in the life of a frugal fanatic?!
A few years ago I took a chance and opened an online savings account that gave me a sign on bonus and claimed a higher interest rate than any brick and mortar bank. While the name of this bank has changed, the benefits have stayed the same.
With Capital One 360 Savings, you can bank online and earn a higher interest rate. As of today, the current annual percentage yield is 1%, compare that to an APY of 0.3% at a very popular national bank. While this seems like a small amount, the impact is noticeable, especially with the more money you save. Over the years, this APY has been even higher depending on the economy and interest rates. It is always noticeably higher than other savings accounts my husband and I have with different banks.
At first I was hesitant to use an online saving account, but now I am hooked. I can transfer money to and from my local bank easily (where my checking account is located) and from anywhere-laptop, phone, bank. There are Capital One ATMs that can be used, but I choose not to. I’ve noticed that with having my savings with an online bank and a general 72 hour waiting period for transfers to become available, I save more money. It’s not easy for me to transfer $100 on a whim. I have to think about withdrawing money from savings. Importantly, the bank is insured by FDIC like any other bank you use.
Another I perk I LOVE about my savings account is that I can easily open other savings accounts within my Capital One 360 savings. This means I can immediately transfer money between these accounts and open accounts for Christmas savings, daycare savings, or even a future travel fund. I enjoy ‘earmarking’ my accounts for things we want or need and find this helps me save for a purpose.
Happy Saving my Frugal Friends!!