So how much interest does your bank pay you on your savings account? (If you even have a savings account. Many of us don't these days, but financial planning experts assure us that we should.) Less than one percent? Almost one percent? That's pretty low and hardly seems worth the effort of cutting corners and scrimping just to have a little savings.
what if you could draw more than two percent interest on your savings
account? Now, that would be worth the trouble, wouldn't it?
fairly recent Washington
article was titled "Does
America have a savings crisis?" The conclusion the writer
reached was that, yes, we do indeed have a savings crisis. For
example . . .
faced with an unexpected $400 expense, 4 in 10 adults said they would
not have the money to cover it. . . . To get the funds, they would
have to sell something or borrow." That $400 would cover just
one small car-repair bill, which will inevitably happen at some
point. And let's not even think about medical emergencies and
was a time," the writer continued, "in the 1970s when the
savings rate in the United States was in the double digits. But the
most recent figures from the U.S. Bureau of Labor Statistics put it
at 6 percent, the lowest level since the 2008 financial crisis. The
drop is part of a 60-year downward trend in the personal savings
Almost a third (32%) of Americans have absolutely nothing in savings.
Well over half (58%) have less than $1,000 in savings.
Less than a quarter of Americans have more than $1,000 in savings.
the experts say and we all know that we need to save some money for
life's inevitable emergencies and financial crises. Maybe we would if
we had a little more incentive.
Low Interest Rates
huge obstacle to making any real effort at saving is the typical low
interest rates banks and credit unions and other financial
institutions offer on savings accounts. There's just not much
incentive to save. My bank, for example, has an APY (or annual
percentage yield) of just slightly more than half a percent, 0.55%.
(I won't name the bank, but it's that one with many branches and
affiliated with the huge discount chain headquartered in Arkansas.)
Half a percent is pitiful enough, but it gets much worse . .
Wells Fargo Platinum offers an APY of 0.05%.
For Bank of America, the standard savings interest rate is 0.03%.
The standard savings rate for U.S. Bank is a measly 0.01%.
very little return for letting a bank hold your money and use it to
make themselves a lot of money. There is now an alternative, though,
though – one that will pay you more than 2% on your savings. That's
almost 20 times the national average savings rate!
Savings Interest Rates Are So Low
Brick-and-mortar banks aren't necessarily cheapskates or trying to cheat you out of your due. It's just that they have an enormous
amount of overhead.
And that has to be paid for somehow.
those buildings at the various branches cost hugely to build, and
then they have to be heated and cooled and maintained. Then there is
the cost of ATMs and the tellers' and officers' salaries. And all
that paper they use – that costs plenty too. So the banks pay for
these things by paying you very little interest on your savings.
totally online bank, however, wouldn't have all that overhead, would
it? Still, there's more to it than overhead expenses.
of us first started trying to save a little money when we began
making some money as teens at our first job. And most of us just
stuck the money in savings without looking at the interest yield. We
were told we needed to save, and so we did. All of us are also averse
to change, so we just stuck with the bank we started out with long
banks, then, have no real incentive to raise their rates. They know
that many customers will stay with them because they have grown
comfortable with the situation. They are counting on that inherent
it does pay to shop. And it can pay big over the long haul.
Savings Alternative to Help You Make Money Easily
there's VARO – an all-mobile, online bank that helps you save and
make money with higher savings interest rates.
offers an APY of 2.12% on smaller savings accounts. You can even open
an account with just one penny and begin making money. And with
larger savings accounts of up to $50,000, you can get an impressive
2.8%. (You do have to meet a couple of other criteria for the higher
rate.) Now that's a huge increase over what brick-and-mortar banks
typically pay – one that makes saving worth the effort.
your VARO savings account, you'll get . . .
A VARO Visa Debit Card
Ability to connect to PayPal and other transaction conduits
addition, like any other bank, VARO is regulated and FDIC insured up
to $250,000. Your privacy and data safety are insured with their
encryption, access control, secure processes, and audits. And they
also offer free checking if you want that. In fact, VARO charges no
fees for anything.
VARO, they believe you should get a high yield on your savings
without having to pay a dime. They are able to accomplish this
because VARO is all mobile – so no brick-and-mortar branches, no
overhead, and no laughable savings interest rates.
a high-yield savings account like VARO offers, you'll have more
liquid assets at your disposal to invest in other ways. You'll also
have money readily available and easily accessible on your mobile
device to buy the things you need when the need arises – and, of
course, without a fee.
out VARO and start making some real money on your savings.
Even More Money the Easy Way – Buy for Less
you just need to figure out how to turn all that money you're making
on your savings into even more money. You can do that by buying for
less – by buying the same products you'd buy anyway at wholesale
Everyone, we offer low prices on quality bandanas,
and caps, doo
rags, and handkerchiefs.
You can even get discounts on single items, but buying in bulk saves
you even more. Above all, we strive to deliver the best in customer
money the easy way: buy for less!