Mt. Vernon Register-News

Features

July 29, 2013

Online banks may help you boost your savings plan

Putting money away for a rainy day appears to be one of those quaint notions of the past, like Sunday dinner with the family or a hot meal on an airline flight. Currently a growing number of people live paycheck to paycheck. An unexpected expense can be catastrophic.

According to the U.S. Commerce Department, in 1970 Americans saved around 10 percent of their disposable income – disposable incoming being what is left after paying taxes, mortgage, insurance and other fixed expenses. In January 2013 the savings rate was down to 2.2 percent.

Data compiled by financial website NextAdvisor.com shows the average U.S. household has only $3,800 in savings. More distressing, 25 percent of households have no savings at all.

Saving money, of course, starts with a budget. You have to track your income and expenses and end up with a positive balance at the end of the budget period. Cutting expenses and increasing income will increase the amount of money that can go into savings.

Where to put your money

But where do you put your savings? Banks now have minimum deposit requirements and a host of fees that have discouraged some from opening savings accounts. The paltry interest paid is not much of an incentive either.

Polina Polishchuk, an editor at NextAdvisor, suggests looking at opening a savings account in an online bank. Unlike a traditional bank, she says online banks are more consumer-friendly.

“That's why we were for online savings accounts,” Polishchuk said. “They don't have fees. There's no minimum balance requirement, or requirements for how much money you have to deposit into the account every month. And the interest rates they pay are much higher than regular banks.”

They do pay a higher interest rate – though it can be considered high only in comparison to what traditional banks pay. The annual percentage yield (APY) is still under 1 percent. Still, it beats what the big banks are paying.

Text Only
Features
  • Has the ipad lost its swag?

      The company reported this week that sales of its sleek, pricey tablet were down 19 percent from last quarter and 9 percent year-over-year. CEO Tim Cook tried to reassure investors that Apple's new partnership with IBM to sell its devices to IBM's corporate customers will help make iPads ubiquitous in the workplace. "This isn't something that worries us," he said of the iPad sales decline. But the numbers are disappointing no matter how you spin them.

    July 24, 2014

  • Darth Vader is polling higher than all potential 2016 presidential candidates

    On the other hand, with a net favorability of -8, Jar Jar is considerably more popular than the U.S. Congress, which currently enjoys a net favorability rating of -65.

    July 23, 2014

  • Hospitals let patients schedule ER visits

    Three times within a week, 34-year-old Michael Granillo went to the emergency room at Northridge Hospital Medical Center in Los Angeles because of intense back pain. Each time, Granillo, who didn't have insurance, stayed for less than an hour before leaving without being seen by a doctor.

    July 22, 2014

  • Wal-Mart to cut prices more aggressively in back-to-school push

    Wal-Mart Stores plans to cut prices more aggressively during this year's back-to-school season and will add inventory to its online store as the chain battles retailers for student spending.

    July 21, 2014

  • Your chocolate addiction is only going to get more expensive

    For nearly two years, cocoa prices have been on the rise. Finally, that's affecting the price you pay for a bar of chocolate - and there's reason to believe it's only the beginning.

    July 18, 2014

  • web_starbucks-cof_big_ce.jpg Starbucks sees more Apple-like stores after Colombia debut

    This week Starbucks opened its first location in Colombia — a 2,700-square-foot store with a heated patio, concrete columns, mirrors on the ceiling and walls of colorful plants.

    July 17, 2014 1 Photo

  • Screen Shot 2014-07-16 at 11.16.48 AM.png VIDEO: Comcast apologizes after customer service call goes viral

    Comcast issued an apology after one of its representatives kept a customer captive on the phone for nearly 20 minutes, demanding to know why he was choosing another cable provider.

    July 16, 2014 1 Photo

  • 20110929_bowling.jpg Why fewer people go bowling

    Like other industries facing tough economic times, America's bowling centers are trying to reinvent themselves.

    July 15, 2014 1 Photo

  • Almost half of the world actually prefers instant coffee

    Americans' taste in coffee might be getting more high-end _with a growing fixation on perfectly roasted beans, pricier caffeinated concoctions, and artisan coffee brewers - but it turns out a surprisingly big part of the world is going in the opposite direction: toward instant coffee.

    July 14, 2014

  • Screen Shot 2014-07-09 at 11.24.10 AM.png VIDEO: Pilot buys pizzas for storm-delayed travelers

    A Frontier Airlines pilot went above and beyond the call of duty when a recent flight from Washington, D.C. to Denver was diverted to Cheyenne, Wyoming due to bad weather.

    July 10, 2014 1 Photo

Twitter Updates
Facebook
Stocks