Here's an interesting adage: interest works for you when you're earning it- and if you're not careful - it will work against you when you're paying it back. When it comes to interest, the rule is to earn high, and borrow low.
Earning interest and saving money is easier than you may think. Even if your military pay is from one spouse only, allocating consistent savings from each military paycheck of just $10 or $20 a month adds up over time. Creating automatic savings from your military paycheck is as easy as contacting your bank , getting your savings account and bank routing numbers, choosing the amount you want deducted from each military pay period, and clicking submit. Instant savings. Now it's up to you to make that money work hard with the highest interest rates possible. You deserve it.
Why not earn the highest interest rates possible on your military savings accounts? It's easy enough. There are bank products that pay you more interest, have no risk, and are readily available.
MONEY MARKET ACCOUNTS
Consider the value of money market accounts. The rate of interest is directly proportional to your deposited assets, making money markets more beneficial as your deposits grow.
The best money market accounts are tiered to pay you the highest potential interest on your balances, and offer flexibility and easy accessibility.
Money market accounts offer you many of the same benefits as certificates of deposit with the same instant access to your money as your checking account. When your military family needs cash on hand, money markets allow easy access, while offering higher interest rates for your deposited assets, often higher than savings or checking accounts. Look for high interest, low monthly maintenance and small minimum balances for your money market account.
Military personnel can open a money market account easily at most banks. Depositing money into your money market account is just like depositing cash to your savings or checking account. Some banks limit the number of checks that can be drawn against the money market account each month.
CERTIFICATES OF DEPOSIT
Extending for terms from 30 days to 5 years, Certificates of Deposit (CDs) offer higher interest rates on your saved money. CD interest rates and annual percentage yields will not change for the term of the CD account, which can be a secure feeling in a time when bank interest rates are falling. At a glance, CDs offer you:
SWEEPS ACCOUNTS
Some types of account can turn your idle balances to hardworking capital, while you're fast asleep.
Have you heard the latest Sweeps information? A Sweeps Account actually lets you earn higher interest on your money while you sleep because Sweeps Accounts can pay higher interest rates overnight. A Sweeps Account invests your checking account balance overnight to earn that higher interest on your money.
Here's how a Sweeps Account works: the bank analyzes your accounts for your daily transaction volume, your peg balance needs and more. They'll invest the remaining balance overnight in a high-level investment fund or secure money market portfolio, offering you a flexible and secure investment while generating the best possible overnight returns.
Make sure your bank offers a Sweeps Account that is one of the highest-rated Sweep Investment Options, and administered through Federated Securities Corp.
