Interest rates have been at historic lows for quite some time. They are finally beginning to rise slowly. This has many implications on the economy as a whole, but one affect is an increase in the amount that banks are paying on deposit account (i.e. checking and savings).
Now is a good time to take a look at your relationship with your bank and make sure you are getting a good deal. First of all, make sure you are not being assessed a monthly service charge. If you are, speak with your bank representative and see if there is a way it can be avoided. If not, it is time to find a new bank. There is no reason to be paying a monthly service charge to your bank when there are plenty of alternatives which offer free banking.
Find out what you are earning in your savings account. If it is much below 1.50%, its time to switch. Many banks are now offering savings of 1.50% or higher. Personally, we use an online bank because they tend to have higher rates than brick-and-mortor banks. The BIG banks tend to pay the least, with rates as low as 0.03%.
The difference may not seem huge, but lets look at an example. Let’s say you had $15k in a savings account at one of the BIG banks earning 0.03%. Over the course of a year if you never deposited or withdrew any money, you would earn roughly $4.50. If you moved that same $15k to a bank which paid 1.50% you would earn roughly $226.00! That is a difference of over $220.00 in your POCKET for very little effort.
Take the time to do this research and make sure you’re getting the best deal from your bank.