April 4, 2016

Saving in cyberspace

If you’re like many people, you salt away rainy day funds in a savings account at a neighborhood bank, where your money is safe and can at least accrue some interest. Problem is that many banks offer a paltry annual rate of return for savings accounts, often 0.01%, meaning $10,000 saved could accrue only $1 in interest after a year. But that same $10,000 could reap a more robust $110 in interest if kept in an OSA, where the annual percentage yield is as high as 1.10% at the time of this writing.

Learn more about the pros and cons of online savings account by reading my latest article for AARP The Magazine, which can be accessed here.