Econ 101

Investing Basics

// November 22nd, 2011 // No Comments » // Personal Finance

There are many ways to invest to make your money work for you. Building a liquid savings is by having a savings account where you can earn interest.  The most common way to save money is in an account at your bank. There are two different types of accounts, statement and passbook, and most banks have one or the other and you don’t normally get to pick. 

Money that is in a savings account can be accessed at any time, there by being considered liquid. Many savings accounts can be opened with little money and others required a minimum balance. Money market accounts will offer you a higher yield than a bank savings and those can be found online. 

You can get much more information online about investments and savings accounts.  You can find the interest rate for a direct saver account, tax-free savings online and also passbook savings accounts that offer easy access. The choice is yours and its your money, so why not have it work for you?  Investing you hard earned money is a great way to create an extra income that you might be able to retire on. Then you would have the time to enjoy your investing success. 

The Benefits Of Savings Accounts

// July 15th, 2011 // No Comments » // Personal Finance

Most individuals have checking accounts, but few take the time to open savings accounts because the interest rates are low. People should know that there is a benefit to saving money this way.

Savings accounts do not yield very high interest rates, but they allow people to often use the account as an overdraft account. This means that people can have the account linked to automatically transfer money to a checking account if the balance goes into the negative.

Savings accounts are also a good way to separate money for savings and bills. People may think that they can save with a regular checking account, but this will rarely work. Some unexpected expense will also arise to wipe out any money that is saved in checking. A separate savings account gives individuals an exact amount of how much they have saved.

People that have high balances are actually able to earn interest regardless of the low rates. This is the benefit of saving lots of money in a separate account. Brick and mortar banks have lower rates, but a search online may produce better yields. These online banks give people the ability to gain money without the risk of investing. Savings accounts are a very important asset to all bankers.