High Yield Saving Strategies

As omicron fears and an accelerated Fed taper grip the market, many investors want to avoid the volatility of stocks.

Risk tolerance is very personal. Your risk tolerance may dictate that you also invest in a safer way, too. If this is the case for you, or you want to save your emergency fund in a better way, here are some strategies to use right now.

1. High Yield Savings Accounts. Online banks like Vio and Ally offer high yield savings accounts. However, since the onset of COVID, those rates have dropped to a low level. Most banks now offer interest rates under 1%. With a headline inflation rate above 6%, this isn’t a good strategy.

A few new banks now offer higher interest rates. However, there are some restrictions. HM Bradley offers 3% interest, but they require you save at least 20% of your income and set up a direct deposit from your employer. Digital Federal Credit Union (DCU) offers 6% interest on the first $1,000 of your savings account, but you are required to have some connection to the bank before opening an account. T-Mobile offers high yield savings accounts from 1-4% for qualifying customers.

2. Higher Yield Certificates of Deposit (CD). Navy Federal Credit Union offers a starter CD for customers to invest up to $3,000 at a 3% annual percentage yield (APY). You can ladder CDs like this if you want to save your emergency fund this way, too.

3. I-Series U.S. Government Savings Bonds. I-Bonds are paying 7% interest, but there are some restrictions. You can only invest $10,000 per year in I-Bonds. You can’t access the money for a year, and then after one year if you cash them in you pay the previous three months interest as a penalty. After five years, you can cash them in with no penalty.

While bonds aren’t ideal for saving an emergency fund, they can work as fixed-income long-term investments. You can make them work for an emergency fund too, if you ladder them similar to a CD-laddering strategy.

If you’re serious about saving for financial freedom, and you want to save in a safer way, I can help you directly this weekend for free.

At 6 PM EST on Friday December 17th, I’m offering a free webinar to maximize returns on safe investments. This is ideal for those who want to save for peace of mind, but don’t want the risk and volatility of the stock market. I’ll provide you with simple, actionable steps you can take RIGHT NOW to earn you more money. If you’re interested, join the master class launch list. It would be great to have you join us!

Again, this is a free webinar that will provide you the guidance to make money safely and effectively this next year. Join here now!

Have a great day, and I’ll talk to you again soon!

Facebook Comments

Leave A Response

* Denotes Required Field