March 31, 2020

Losing Money While You Save

My friend Alex has a great blog about finance that for some reason I just discovered today. Honestly, if you’re into that type of thing check it out.

Reading it today got me started thinking about my own savings account. (of course, being unemployed is also a good reason to start thinking about your savings account)

I myself happen to have 2 savings accounts, and a checking account. I usually keep enough in checking to pay 2 months bills, and the rest in savings. My other savings account handles all of the money my websites make. I decided to keep them separate so that I can measure actual earnings after I deduct for hosting, advertising, etc.

The question I asked today but couldn’t find a clear answer on is “what’s the interest on my savings account?” I noticed it’s not even listed anywhere on my bank’s web page. When I did track it down, I was shocked to see that it’s only at about 2%.

Why was I shocked? Well, that’s because the standard rate of inflation is just over 3%. That means I’m losing money simply by leaving it in the savings account. That’s not good.

Luckily, my website earnings are making 4.5% in their ING direct account. That means I’m actually earning money on that.

If you want more information about high interest savings accounts check out Alex’s blog post.

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About Ryan Jones

Ryan Jones is an SEO from Detroit. By day he works as a manager of SEO & Analytics at SapientNitro where his team performs SEO for Fortune500 clients. By night he's either playing hockey or attempting to take over the world with his own websites - which he would have already succeeded in doing had it not been for those meddling kids and their dog. The views expressed here have not been paid for and belong only to Ryan, not any of his employers or clients. Follow Ryan on Twitter at: @RyanJones, add him on Google+ or visit his personal website: www.RyanMJones.com

Comments

  1. Hey, thanks for the nice compliment on my article/blog. The reason you just found out about it because I just started it April 2nd! I realized I was writing these kinds of articles on my personal blog, so I decided to focus on the finance topic in a new blog. We’ll see how it goes…