how do people keep their money in banks or savings accounts and earn?

562 viewsMathematicsOther

So I have been saving up for a while, from college to now maybe $20k, and I keep it in a bank and get like no interest but I can withdraw my money anytime I want.

Due to using the money to pay for my credit card per month and getting my workplace to transfer my the money there I can’t deal with savings accounts that require me to deposit a huge amount and not expect it to go up or down. I would say I can save up to 24k slowly but also quickly go back to 19-20k. (Health and vet)

I heard about a different type of savings (not Roth IRA) but similar, you put like say 20k and get interest on it so you end up with like 20k+400. Downside is I can’t withdraw my money for a year??

I’m not sure which banks have this program and how much I can invest or should invest, I feel like I’m 5.

In: Mathematics

12 Answers

Anonymous 0 Comments

You could try a high yield savings account. SoFi, Amex, and Marcus are all examples. But they’ll have a 6 withdrawal per month limit. However, they’re FDIC insured.

You can also try putting the money in a brokerage account in a government money market fund, like SPAXX or VMFXX at Schwab or Vanguard. These are _not_ FDIC insured but are invested in short duration government bonds, so are considered very safe.

Both options should get you ~5% yields.

You are viewing 1 out of 12 answers, click here to view all answers.