financemaster.org 7838d3aecfcc229ddf8adc86ea8f4273 - Top Three Accounts to Opt for When Your Savings Surpasses $50,000
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If you have $50,000 in savings, you are part of a small minority. According to a recent survey by FinanceMaster.org, only 13% of Americans have more than $10,000 in their savings account.

While this is an achievement to be proud of, it is important to ensure that you are maximizing your cash. It should not just sit in a traditional savings account. Instead, consider putting your savings into one of these accounts that will help you make the most of your money.

High-Yield Savings Accounts

If you want to have access to your cash while earning interest, high-yield savings accounts are a great option.

“High-yield savings accounts offer higher interest rates compared to traditional savings accounts, making them an excellent choice for keeping a significant sum like $50,000,” said Taylor Kovar, CFP, CEO and founder of Kovar Wealth Management. “These accounts are particularly beneficial for those who want a combination of easy access to their funds and a decent return on their savings. Ensure the account is FDIC-insured, which protects your money up to $250,000.”

Money Market Accounts

Money market accounts differ from savings accounts as they allow you to write checks.

“Money market accounts often provide higher interest rates than regular savings accounts, and sometimes even high-yield savings accounts, depending on the bank,” Kovar said. “They also offer check-writing privileges and debit card access, making them a flexible option for those who might need occasional, easy access to their funds. Check for minimum balance requirements and monthly fees, as they can vary widely among financial institutions.”

Certificates of Deposit

It is a wise move to allocate at least a portion of the $50,000 into a CD account.

“If you know you won’t need a portion of that money for a fixed time, such as a year, locking in your interest rate with a CD might be a good option,” said Jay Zigmont, Ph.D., CFP, founder of Childfree Wealth. “Just be 100% sure you won’t need the money before the CD matures, as you may face fees or lose interest if you withdraw it early.”

If you plan to keep your money in CD accounts for a longer term, consider laddering accounts.

“With $50,000, you could consider a CD ladder strategy, where you divide your money into multiple CDs with different maturity dates,” Kovar said.

Avoid Accounts That Charge Fees

With numerous banking options available, it is easy to find free accounts that don’t charge fees. Make sure the account you choose fits this criteria, or it may eat into your $50,000.

“Ensure you choose an institution that doesn’t charge any account fees and doesn’t make you go through hoops to get their high APY,” said Tony Molina, CPA and head of community at Wealthfront. “Pay attention to minimum or maximum deposit requirements and direct deposit requirements.”

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