In our continuing series resolution revolution series, we are giving you some financial advice.
Here are some tips on the best way to start saving in the New Year.
If you want to save your money the smart way, then there's three key things to remember:
First, make a budget so you know exactly how much you can set aside.
Next, make sure the bank is FDIC insured, that means if the bank goes under, the government will insure your money up to $100, 000 and do your research; look for a bank that has higher yields or interest rates.
Financial experts say Internet banks and credit unions tend to offer higher return rates because they have less overhead costs.
“Rates have been dropping rapidly over the past few years. It's starting to push back again, there's competition in the market now,” says Brian Shullaw, Senior Financial Anaylst, SNL Financial. "People are starting to give two percent or even three percent range on their yields.”
Finding a bank with a higher yield or interest rate could save you hundreds or even thousands. Another important tip when dealing with larger amounts of money is to consider stock or bond options. They can be high-risk but offer a higher amount of return.
The bottom line here though, is to make sure you do your research because it could save you a lot of money in the end.