Business

July 29, 2013

Online banks may help you boost your savings plan

Putting money away for a rainy day appears to be one of those quaint notions of the past, like Sunday dinner with the family or a hot meal on an airline flight. Currently a growing number of people live paycheck to paycheck. An unexpected expense can be catastrophic.

According to the U.S. Commerce Department, in 1970 Americans saved around 10 percent of their disposable income – disposable incoming being what is left after paying taxes, mortgage, insurance and other fixed expenses. In January 2013 the savings rate was down to 2.2 percent.

Data compiled by financial website NextAdvisor.com shows the average U.S. household has only $3,800 in savings. More distressing, 25 percent of households have no savings at all.

Saving money, of course, starts with a budget. You have to track your income and expenses and end up with a positive balance at the end of the budget period. Cutting expenses and increasing income will increase the amount of money that can go into savings.

Where to put your money

But where do you put your savings? Banks now have minimum deposit requirements and a host of fees that have discouraged some from opening savings accounts. The paltry interest paid is not much of an incentive either.

Polina Polishchuk, an editor at NextAdvisor, suggests looking at opening a savings account in an online bank. Unlike a traditional bank, she says online banks are more consumer-friendly.

“That's why we were for online savings accounts,” Polishchuk said. “They don't have fees. There's no minimum balance requirement, or requirements for how much money you have to deposit into the account every month. And the interest rates they pay are much higher than regular banks.”

They do pay a higher interest rate – though it can be considered high only in comparison to what traditional banks pay. The annual percentage yield (APY) is still under 1 percent. Still, it beats what the big banks are paying.

Text Only
Business
  • New Dalton lab could create 15 to 20 jobs

    A new laboratory opening in Dalton on Tuesday is expected to create 15 to 20 jobs over the next couple of years for chemical engineers, chemists and lab technicians, according to company officials.

    April 11, 2014

  • Next year’s high-skilled visas snapped up in days

    Businesses seeking highly skilled workers from overseas took less than a week to snap up all 85,000 visas available for next year, the U.S. Citizenship and Immigration Services announced Monday.

    April 8, 2014

  • Study looking at ways to bring more manufacturing to area

    Technology is changing every part of the economy, including manufacturing. Advanced machinery and manufacturing processes require workers with new and advanced skills.

    April 2, 2014

  • Werner Braun: Saying goodbye to CRI

    It’s time to say farewell.
    For the past 14 years, I have had the honor of serving as the president of the Carpet and Rug Institute (CRI), and what an honor it’s been.

    March 27, 2014

  • Carpet Capital Association of Realtors

     Uh-oh! Another prospective buyer upset with me again! Our phone conversation didn’t go very well. He didn’t like the questions I asked, or the advice I offered. Wait, the phone’s ringing ...

    March 21, 2014

  • Werner Braun: Relay for Life honors cancer survivors

    It’s the rare few among us who haven’t been touched by the lives of friends or family members who have been given a diagnosis of cancer. I know I have.

    March 20, 2014

  • Werner Braun at DGCC 3 mlh.jpg Friends, industry leaders saying goodbye to Braun

    When Werner Braun’s family immigrated from Germany, they came with all of their belongings in three suitcases and none of them spoke any English.

    March 18, 2014 3 Photos

  • Yarbrough named CRI president

    After a “rough half decade,” the carpet industry has begun to bounce back, and Joe Yarbrough said he looks forward to helping it grow.

    March 13, 2014 1 Story

  • Werner Braun: Sustainability from a facility manager’s perspective

    Sustainability means different things to different people, but from the facility manager’s perspective, sustainability can be viewed somewhat like a three-legged stool: a stool that balances specifications, installation and maintenance.

    March 13, 2014

  • Area jobless rate up slightly

    Metro Dalton’s unemployment rate increased to 9.5 percent in January, from 9.4 percent in December 2013, according to the Georgia Department of Labor. The rate was 11.9 percent in January 2013.

    March 13, 2014