Geek and Cheap

First off, do you have any kind of emergency fund that you are contributing to in case something happens and you need some cash fast? If not, I hope that you pay special attention to this post and open up an savings account. DO NOT open up a savings account at a normal brick and mortar bank. The interest rates and fees on these accounts are terrible. Often times the fees that you are charged are more than any sort of interest that you might make in any given month. Instead, go online and open up a savings account through one of the growing number of online banks. Do not be afraid, these banks are FDIC insured just like your local bank so you do not have anything to worry about. Some of the more popular online banks are listed below with the rate that their savings accounts are currently paying:

• FNBO Direct (First National Bank of Omaha)- 5.05% – No fees, No minimums
• EmigrantDirect – 4.75% – No fees, No minimums
• ING Direct – 4.30% – No fees, No minimums

Any of these accounts would work great as an emergency fund and all of these allow you to setup automatic deposits from your checking account so that you can deposit money into this account without really even thinking.

I have had an account set up for this purpose for several years, and you would be surprised at how much interest you can earn in a relatively small amount of time. It is empowering to check your balance every month and see the “Interest Paid” field getting larger and larger.

There are other online banks offering competitive rates, I just featured 3 of the more popular ones. You can always go to BankRate and search for other online savings products.

Filed under: Saving Money