2 High-Interest Savings Accounts
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The low-hanging fruit. Savings accounts can be a great way to generate wealth, even slowly. Very slow. In fact, many of you may be able to snicker into the "High-Interest" class. Most online currency markets currently pay a small 1.70%. However, they pay approximately 5 times the conventional savings accounts and pending inflation are these rates depend on the increase.
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There are two important applications of high-interest savings accounts. The first is for the oh-so-important emergency fund. To learn more why you should read the emergency fund here. For an emergency fund, you need to have your funds as close to the fluid as possible, which means they are easily accessible. And an online savings account is just a click away. Another great option is to put them on CDs that, while not easy to access, will give you a better rate.
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Other applications hold a place for investment money. If you're starting to try to invest your money, most investment options require a very heavy minimum. It's not easy to scrape together $ 2,500 to open a brokerage account. So putting a little money into an account that earns some interest can be an easy way to get started.
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Speaking slowly, I'm a big fan of "pay yourself first" model for building wealth. What I have to realize is that there are always debts (expected quality loans), always with costs, always have a reply to buy or spend somewhere. But by paying yourself first, you are forced to do things that work on a smaller budget, saving money all the while.
I personally use both ING DIRECT and HSBC Direct. I prefer DIRECT because they allow me to easily split my savings. I have an account for home improvements, an account for a new lawn mower I'm storing for (riding one ... it's enough pushing crap), an account for future investments, etc. All I need to do is log in and I can check all my accounts. And they are set up for automated deductions that coincide with my paychecks, which are very convenient. The reason I have an HSBC account because, in a moment, they have the best rate and they are my regular banking institution that makes it convenient. Interest rates on savings accounts will change and in good times, when banks are competitive, it can be attractive to transfer your money to everyone. It becomes a big pain in the ass so I tend to stay in THE DIRECTLY until they pee off (by not raising their rates).
I hope to describe why high-interest savings accounts are a legitimate way to make money online. They are important in building resources and some of the conveniences (such as multiple ING Direct accounts) absolutely no reason not to use them.
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