I’m setting up my emergency fund at the bank. What type of interest rate would
you call “good” on a savings account?
-Rita
Dear Rita,
Let’s focus on how to find the best rate, because bank rates change quickly. Interest rates have been extremely low lately, so it’s going to be impossible to find anything that looks like a great rate.
The best rates are usually found with money market accounts. These are still FDIC insured but have limited access. Ask first about money markets at your bank, then try competing banks in the area. Finally, check out credit unions. These institutions often offer higher rates because they’re designed specifically for their members instead of shareholders.
By the way Rita, congratulations on getting started! Although it may not feel like a big step, to me it may be the most crucial one. Taking action to create and move toward financial security is a real leap toward abundance!
Warmly,
Miata