July is National Savings Month. So, it’s a good time to focus on improving your savings. There are two areas to consider: improving your savings contributions and improving your savings performance. Here are a few action items for you:
- Emergency Fund – Do you have one and is it fully funded? If the answer to either is no, then it’s time to take steps to set up or beef up your emergency fund. For more about emergency funds: Your Emergency Fund: How Much is Enough?
- High Yield Savings Accounts – Take a look at the interest rate on your current savings account. Could this be improved? Is it in a traditional savings account? If so, then consider parking a portion of your savings in a high yield savings account. The average interest rate on a traditional savings account is .33%*. The average for a high yield savings account is 3.5 - 4.5%*. That is more than 10x the return on your savings. If you would like some guidance on how to find a high yield savings account, let us know.
- I bonds – Series I bonds are designed to protect the value of your cash from inflation. These bonds pay both a fixed interest rate and a rate that changes with inflation. For more information visit our website page on I Bonds. Reach out if you would like to discuss the pros and cons of I Bonds and if they may be a good fit for you.
- More About Saving – What Accounts Should I Consider If I Want to Save More
If you would like to talk about savings or anything else financial, please give me a call.
*CBS News, Moneywatch, March 17,2023