If you're like many Americans, you spend a lot more time thinking about your stock investments and real estate investments . and just about any other investment that's not your savings account. After all, the stock market has historically returned some 10% per year, on average, over the past century, and real estate sometimes jumps that much or more in a single year (though not too often). Why bother focusing on your savings or checking account, when it just pays a relative pittance? Because that pittance can add up, that's why.
Let's say that you keep about $5,000 in a bank account, earning about 1% annual interest. Over 20 years, that would become $6,100. But if you earned 2%, your money would grow to $7,400 -- a $1,300 increase. Even small differences in percentage points can have a big impact on your bottom line.
So what should you do? Seek out the best returns you can find for your savings. We offer more short-term savings guidance and some special interest-rate deals in our Savings Center. You'll also be able to look up good rates at Bankrate's
The folks at bestcashcow.com are also a good resource, regularly directing investors to outstanding interest rates from banks and brokerages. Last time I checked, for example, they were highlighting competitive rates being offered by ING
Shop around and make sure that your money is earning as much as it can.
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Longtime Fool contributor Selena Maranjian does not own shares of any companies mentioned in this article.
