$show=post

Popular Categories$show=/search/label/Labels

$show=post

7 savings mistakes Americans still make every day

There are a few things you’re probably forgetting that are costing you a big chunk of change.


By Amanda Dixon, Bankrate

Overspending and barely saving? Join the club.

Many of us would love to have an adequate savings cushion or a bigger rainy-day fund. And for those of us who aren’t living hand to mouth, perhaps we could. A few tweaks and some slight adjustments could potentially make a big difference.

Recent surveys have revealed some of Americans’ silliest savings mistakes. Ditching some bad habits and making small changes could help you get a step closer toward reaching your financial goals.



Not knowing your interest rate


There's no reason to wait to open a new savings account, especially if you’ve had the same one for quite some time. But it'll be hard to pick out a better one if you have no clue how much interest you're currently earning.

Among folks with a savings account, 52 percent don't know what their annual percentage yield is, according to a 2018 PurePoint Financial survey.

"(They're) not necessarily equating the impact of what they could earn on savings on their day-to-day purchases or even having a sense of that," says Maha Madain, PurePoint Financial's head of enterprise marketing.




Assuming checking and savings accounts pay the same yield


PurePoint's survey of 2,000 people found that about 2 in 5 think their checking and savings accounts offer the same amount of interest. Of course, whether that's accurate depends on who you're banking with.

The average savings account pays 0.10 percent APY, according to Bankrate data. And Bankrate's latest checking and ATM fee survey found that the average interest-bearing checking account pays 0.06 percent APY.

Those yields are essentially the same. But high-yield savings accounts currently pay above 2 percent APY.

Start doing some research and you'll see that you could easily be earning a lot more interest elsewhere, especially if you have a decent-sized savings cushion.

"Now is a particularly important time to shop around and make sure you’re getting the best return because the top yields on liquid savings are above 2 percent, which is the Fed’s inflation target," says Greg McBride, CFA, Bankrate's chief financial analyst. "So the difference between shopping around or not is the difference between maintaining the buying power of your savings or languishing at some return that’s a fraction of 1 percent."



Sticking with a low-yield savings account


It's a shame just how many people are keeping their money in a savings account paying little to no interest. According to a May 2019 Bankrate survey, more than 4 in 10 respondents earn either nothing at all or less than 1 percent annually.

Only a small portion of participants in the survey (14 percent) said they're earning some of the highest yields that banks offer.

"It boils down to either just being sloppy or complacent with your cash, in which case it’s really not a function of interest rates as much as it’s the old ‘I haven’t gotten around to it yet’ excuse," McBride says. "In other cases, it’s just the fact that for a lot of people, they’re undersaved. They don’t have much in the way of savings. And so even a better yield is not going to generate much in the way of additional interest because they don’t have much in the way of savings."



Letting money sit in a checking account


Another bad move many of us are guilty of is treating our checking accounts like savings accounts. The average American has nearly $5,000 sitting in a checking account or digital wallet, according to PurePoint Financial. That's not smart, considering how little checking accounts pay, even if they're interest-bearing accounts.

It's possible to find rewards checking accounts paying more than 3 percent APY. But you're not going to earn that much interest without paying your dues. You'll have to meet some requirements, like using your debit card a certain number of times every month. That's why you're probably better off with a high-yield savings account.



Bypassing online banks


Opening an online bank account is the easiest way for savers to earn more interest. Online banks offer yields that are more than 20 times higher than the national average. But in a Bankrate survey, more than half of the participants (58 percent) said they either don't currently have an online savings or money market account or they've never had one before.

According to Ally Bank, keeping savings at brick-and-mortar banks costs consumers billions of dollars of unearned interest annually.

"Better is out there, and they're missing out by not taking another look at their finances and what online banks can do for them," says Anand Talwar, Ally's deposits and consumer strategy executive.

The issue prompted the bank to launch a new campaign that ended Sunday, its largest weeklong promotion ever. New and existing customers who enrolled and move new money into an online deposit account could earn a 1 percent cash bonus, up to $1,000.



Not automating your savings

Getting into the habit of saving money regularly can be difficult. That could change if you can automate the process of socking away funds from your paychecks.

"Depositing funds into your savings account on a regularly scheduled basis -- or 'automating' your savings -- is an effective way to make savings an ongoing priority," says Thea Mason, vice president of deposits at PenFed Credit Union.

But while there are many tools that'll automate your savings, not everyone's taking advantage of them. A 2018 survey of 1,000 adults released by PenFed found that less than half (48 percent) use automatic savings tools.

The survey also found that adults using automatic savings tools have $3,800 more in savings, on average, than adults who only use a banking app and $4,100 more than adults who don't use an automatic savings tool or a banking app.



Borrowing from retirement savings


A not-so-silly mistake some Americans are making is tapping their retirement accounts prematurely. Nearly 3 in 10 have taken a loan, early withdrawal and/or hardship withdrawal from a 401(k), a similar retirement account or an IRA, according to a Transamerica report.

Needing to pay off debt or cover a financial emergency are the most common reasons workers borrow from a 401(k) plan or a similar account. But using long-term retirement savings to solve short-term problems may come back to haunt you.

"Given that it's impacting their account size now, it can have a compounding effect over the size of the retirement account when they reach retirement age," says Catherine Collinson, president and CEO of the Transamerica Institute and Transamerica Center for Retirement Studies. "So, for example, by dipping into their savings, they have fewer savings to grow and fewer savings to potentially benefit from the compounding of their investments over time."

See more at Bankrate

COMMENTS



|Featured Content_$type=three$c=6$l=0$m=0$s=hide$rm=0


Made with in NYC
Name

4th of July,7,Abu Dhabi,2,Accessories,234,Acne,13,Adventure,32,Adventure Travel,638,Advice,295,Africa,26,African Food,2,AIDS,1,Air Travel,150,Alabama,5,Alaska,20,Alberta,1,Alcohol,4,All About Beer,1,All About Wine,2,Alternative Treatments,4,America,77,American Food,5,Amsterdam,2,Android,11,Anguilla,3,Animal,367,Animal Health,1,Animals,103,Anniversary,1,Anniversary Cake,11,Antarctica,7,Anti-aging,49,Antigua,3,Appetizers & Snacks,2,Apple,11,Apps,16,Argentina,15,Arizona,19,Arkansas,2,Armenia,1,Asia Travel,47,Asian Food,7,Asthma,4,Athens,3,Austin,8,Australia,92,Australian Food,1,Austria,13,Autism,1,Auto Insurance,1,Auto Show,52,Autos,46,Azerbaijan,1,Baby Shower Cake,29,Back Pain,25,Bags,10,Bahamas,14,Balance Work & Life,50,Banana Cakes,2,Bangladesh,8,Barn Finds,1,Bathroom,43,Be a Better Manager,33,Beach Travel,58,Beaded Dress,2,Beards and Shaving,29,Beauty,1888,Beauty & Style,35,Beef Recipes,8,Belarus,1,Belgium,9,Belize,15,Bermuda,5,Best Products,17,Better Partner,40,Beverages,3,Bhutan,9,Bills to Pay,35,Birds,4,Birth Control,1,Birthday Cake,109,Blue Lagoon,2,Blueberry Cake,11,Body & Mind,6,Bolivia,3,Botswana,3,Brazil,38,Bread,11,Breads,1,Break Room,12,Breakfast & Brunch,6,Breakup,19,Breakups,3,breast,1,Breasts,69,Broken Hearts,5,Brownie,8,Brunei,1,Budget Travel,97,Bundt Cake,30,Business Skills,103,Butter Cake,52,Buying,1,By Region,3,Cake Decorating,113,Cakes,54,California,109,Cambodia,4,Camera,6,Canada,80,Cancer,73,Car Shows,1,Car Tech,2,Caramel Cake,5,Career,232,Career Advice,298,Career Choice,125,Career Growth,180,Career Paths,24,Career Problem,8,Caribbean,45,Caribbean & Mexico,5,Carrot Cake,22,Cats,49,Celebrity,17,Celebrity Dress,2,Celebs,1,Ceremonial Cake,9,Certified Pre-Owned Vehicles,1,Cheese Recipes,4,Cheesecakes,251,Chicago,7,Chicago Auto Show,2,Chicken Recipes,14,Chiffon Cake,5,Children's Health,21,Chile,7,China,21,Chocolate Cake,395,Christmas,35,Christmas Cake,23,Christmas Travel,14,Classic Cars,39,Cleaning Tips,144,Clinical Practice,1,Clothes,1,Cocktail Recipes,2,Coconut Cake,21,Coffee,1,Coffee Cake,15,Coliseum,1,Colombia,18,Colorado,32,Columbia,3,Communication,2,Companies,2,Compassion,2,Computing,16,Connecticut,4,Consumer Electronics Show,5,Cookies,10,Cooking,8,Corporate Travel,2,Costa Rica,13,Country Travel,250,Creative,309,Creative Idea,22,Creative Ideas,37,Croatia,15,Cruiser Travel,16,Cuba,18,Cultural Travel,66,Cupcake,322,Customs & Classics,2,Czech Republic,6,D.C.,2,Dandruff,1,Dating,18,Dating Advice,73,Dating Advice for Women,22,Dating Tips,13,Decor,23,Decorating Ideas,181,Delaware,1,Demotivational,636,Denmark,13,Dental Health,26,Dentistry,1,Depression,24,Desert Travel,1,Desserts,3,Detroit Auto Show,4,Diabetes,25,Diet,131,Dining Out,3,Dinner,15,Disease,116,Diverse,1,Divorce,16,DIY,112,DIY Fashion,34,Dogs,156,Doughnuts,5,Dress,29,Drink,27,Drinks,1,Drinks & Cocktails,4,Driving,3,Drugs,3,Dubai,15,Ears,2,East Africa,4,Easter,1,Easter Island,1,Easter Travel,1,Eco Travel,18,Ecuador,7,Education,88,Eggs,3,Egypt,4,Electronics,4,Electronics and Gadgets,2,Emirates,1,England,13,Entertainment,148,Enthusiasts,131,Entrepreneurship,40,Estonia,2,Eswatini,1,Ethiopia,2,Europe,110,European Food,8,Exercises,51,Eye,300,Eye Health,28,Eyebrow,56,Eyelash,20,Face,54,Facts,284,Fall Travel,43,Family,16,Family Travel,128,Faroe Island,1,Fashion,395,Fashion for Kids,2,Fashion for Man,12,Fashion for Woman,31,Fat Loss,91,Father's Day Cake,4,Father's Day Travel,1,Featured,218,Features,1913,Fertility,2,Festival Travel,25,Fiji,6,Finance,10,Finland,16,Fish & Seafood,13,Fitness,1210,Fitness & Exercise,219,Florida,69,Food,141,Food and Drink,14,Food Recipes,7,France,37,Frankfurt Motor Show,2,Free Travel,3,French,6,French Polynesia,5,Friendship,40,Fruit & Veggie Recipes,8,Fruitcake,70,Fruits,4,Fuel Economy,1,Fun,42,Funny,546,Gadgets,31,Galapagos,3,Games,13,Garden,24,Gardening,276,Gearheads,1,General,7,Geneva Motor Show,3,Georgia,14,Germany,18,Get Healthy,63,Ghana,2,Girlfriend Grooming,10,Google,15,Graduation Cake,2,Gratitude,11,Greece,37,Green Living,5,Greenland,1,Grooming,89,Guatemala,2,Hair,1264,Hair Care,317,Hair Color,299,Hairstyle,65,Hairstyles,855,Halloween,41,Halloween Cake,12,Halloween Travel,9,Happiness,19,Hawaii,53,Hayden Panettiere,1,Headache,22,Health,3176,Health & Fitness,300,Health Care,492,Health Insurance,1,Healthcare Tech,6,Healthy,12,Healthy Drinks,31,Healthy Eating,186,Healthy Habits,159,Healthy Living,347,Hearing,1,Hiking Travel,63,HIV/AIDS,4,Holiday Travel,28,Holland,1,home,31,Home & Garden,205,Home and Decor,484,Honeymoon Travel,128,Hong Kong,13,Horoscope,31,Hot Rod Power Tour,1,Hotels,71,Housekeeper,8,Hungary,3,Ice cream Cake,21,Iceland,42,Idaho,4,Ideas,11,Illinois,13,Imports,1,Impress a Girl,20,Impress Women,4,Independence Day Travel,1,India,36,Indiana,5,Indonesia,13,Indoor Gardening,69,Industry,5,Inspiration,58,Insurance,5,Internet,19,Internship,8,Interview Skills,37,Investing,12,iPad,2,iPhone,6,Iraq,1,Ireland,36,Island,60,islands,2,Israel,10,Italy,56,Jamaica,8,Japan,45,Jealousy,2,Jewelry,13,Job Search,47,Jordan,6,Just For Fun,2,Kansas,6,Kentucky,2,Kenya,2,Kids & Pets,10,Kitchen,67,Koala,1,Korea,2,Kyrgyzstan,1,Labels,1,Lamb,2,Laptops,4,Latin America,3,Latin American Food,1,Latvia,1,Laundry,6,Layer Cake,95,Leadership,44,Legs,1,Lemon Cake,18,Life,1,Life Hacks,277,Lifestyle,1582,Lips,134,Lithuania,2,London,24,Long Distance Relationship,24,Los Angeles Auto Show,14,Louisiana,9,Love,165,Lowa,4,Lunch,5,Luxembourg,2,Luxury Travel,35,Maine,6,Maintenance,3,Makeup,608,Makeup & Beauty,11,Makeup Tips,77,Malaysia,1,Maldives,15,Malta,2,Mango Cake,3,Manicure,10,Marketing,10,Markets,11,Marriage,97,Marshmallow,3,Maryland,6,Massachusetts,9,Massage,5,Mauritius,6,Meditation,35,Men & Women,18,Men's,5,Men's Health,14,Menstruation,21,Mental Health,302,Mexico,74,Miami,13,Michigan,5,Microsoft,6,Middle Eastern Food,2,Mind,3,Mississippi,2,Missouri,7,Mobile,22,Moldova,1,Monaco,1,Money & Career,22,Monkey,3,Montana,12,Morocco,20,Mother's Day Travel,1,Motherhood,16,Motivation,2,Motorcycles,106,Motorsports,2,Mousse,2,Muffins,9,Mug Cake,14,Multiple Sclerosis,1,Muscle Cars,4,Muscle Cars & Hot Rods,3,Muscle Gain,2,Myanmar,9,Nail Art,195,Nails,252,Namibia,4,Nature,4,Nature Travel,102,Nepal,6,Netherlands,11,Nevada,23,Nevis,1,New Bikes,2,New Car Deals,1,New England,5,New Jersey,2,New Mexico,6,New Year Fashion,6,New Year's Day Travel,6,New York,55,New York Auto Show,3,New York City,20,New Zealand,47,Newfoundland,1,Newlyweds,4,News,334,Nicaragua,2,North America,11,North Carolina,6,North Dakota,1,North Ireland,1,Northern Ireland,1,Norway,20,Nutrition,447,Occasional Travel,9,Oceania,1,Offbeat,564,Ohio,6,Oman,5,Online Date Tips,2,Operating Systems,2,Oral,4,Oregon,10,outdoor,3,Outfits,166,Ownership,61,Pain,24,Painting,16,Pakistan,3,Panama,5,Pancake,19,Panda,1,Panna Cotta,3,Paraguay,1,Parenting,371,Paris,23,Paris Motor Show,4,Pasta,2,Pastry,7,Pebble Beach Concours d'Elegance,2,Pedicure,4,Penguin,4,Pennsylvania,10,People & Places,88,Perfumes,14,Personal Finance,164,Peru,21,Pets,209,Phoenix,1,Photo Feature,1,Pie,27,Pimple,3,Plum Cake,1,Poke Cake,10,Poland,3,Popular Ingredients,26,Pork Recipes,7,Portable Media,14,Portugal,21,Pound Cake,55,Prague,1,Pregnancy,112,Premium,1,Printer,2,Protein Bars,1,Psychology,1,Pudding,9,Puerto Rico,7,Pumpkin Cake,45,Qatar,6,Quick & Easy Recipes,11,Real Estate,72,Recalls,4,Recipe,1098,Recipes,52,Recipes & Meal Ideas,3,Recipes By Course,5,Relationship,167,Relationship Advice,180,Relationship Advice for Men,23,Relationship Advice for Women,27,Relationship Problems,58,Relationship Secrets,14,Relationships,185,Research,94,Resort,11,Restaurants & News,13,Resume,11,Retirement,10,Reviews,1,Rhode Island,2,River Travel,2,Road Trips,49,Romania,4,Romantic Getaways,15,Rome,5,Russia,16,Safety,5,Saint Lucia,1,Saint Patrick's Day Travel,1,Salad,6,San Miguel de Allende,1,Science & Tech,66,Scotland,10,Seasonal,56,Seasonal Travel,59,Security,9,Self Help,14,Self-Care,3,SEMA Show,5,Senior Relationship,2,Sex,7,Sexual Health,19,Shanghai Auto Show,7,Shaving,1,Sheet Cake,20,Shirt,4,Shoes,29,Shopping,10,Shots & Shooters,1,Side Dishes,4,Sightseeing Tours,2,Singapore,19,Ski Resorts,10,Skin,429,Skin Caare,1,Skin Care,610,Sleep,62,Slovenia,6,Small Business,164,Smartphone,28,Smile,1,Smoothies & Juices,3,Snacks,1,Social Media,44,Solo Travel,24,Solomon Islands,1,Somoa,1,Soth Africa,1,South Africa,14,South America,3,South Carolina,4,South Dakota,5,South Korea,4,South Pacific,2,Space Travel,14,Spain,33,Special,46,Special Cake,579,Special Feature,113,Special Features,490,Sponge Cake,15,Sports,22,Sports and Exotics,4,Sports Cars,8,Spring Travel,23,Squirrel,1,Sri Lanka,6,Strawberry Cake,22,Street Fashion,8,Stress Relief,35,Stroke,2,Student Travel,1,Style Guide,25,Summer Travel,53,Summer Vacation,8,Supercars,10,Sweden,19,Swiss Alps,1,Switzerland,21,Tahiti,1,Taiwan,3,Tanzania,1,Tarts,12,Tattoos,82,Taxes,7,Teas,2,Tech,89,Tech Advice,12,Tech Education,7,Tech Hacks,19,Tech Updates,2,Technology,19,Teen Advice,4,Teeth,5,Tennessee,6,Texas,57,Thailand,31,Thanksgiving Cake,4,Thanksgiving Travel,5,Therapy,3,Things to Do,165,Tibet,2,Tips,264,Tips & Tricks,6,Tokyo Motor Show,2,Tools & Skills,16,Top Stocks,1,Top Stories,1,Traditional Cake,4,Train Travel,23,Training,1,Transportation,22,Travel,1044,Travel Advice,64,Travel Apps,1,Travel Guide,40,Travel Tips,149,Trends,7,Trucks,1,True Health,5,Tunisia,2,Turkey,10,Turkish,1,Tuscany,1,TV,2,UAE,10,UK,40,Ukrine,1,Understanding Women,28,Urban Travel,47,Uruguary,1,USA,630,Utah,12,Uzbekistan,1,Vacation Travel,245,Valentine's Day Cake,7,Valentine's Day Travel,1,Vanilla Cake,17,Vegetables,3,Vehicle Travel,2,Venezuela,1,Vermont,4,Victoria Falls,1,Video,5,Vietnam,5,Virginia,5,Waffles,3,Washington,15,Washington DC,20,Waxing,19,Web & Social,17,Wedding,87,Wedding Cake,549,Wedding Dress,30,Weddings,60,Weddings Travel,4,wei,1,Weight Gain,29,Weight Loss,760,Weird,172,Wellness,201,West Indies,2,Wi-Fi,2,Wildlife Travel,13,Winter Travel,56,Wisconsin,5,Women Lifestyle,24,Women's,689,Women's Health,173,Work Environment,77,Workout,8,Workouts,81,Worldwide,155,Wyoming,2,xxx,1,Yemen,1,Yoga,85,YouTube,3,Zadar,2,Zambia,3,Zimbabwe,4,
ltr
item
dearJulius.com: 7 savings mistakes Americans still make every day
7 savings mistakes Americans still make every day
There are a few things you’re probably forgetting that are costing you a big chunk of change.
https://1.bp.blogspot.com/-sgwiwHJIDQU/XhswzusUE6I/AAAAAAABtdU/n-FzQqY-y-U7faVAj_G20U3_zMb03AywQCNcBGAsYHQ/s1600/savings%2Bmistakes.jpg
https://1.bp.blogspot.com/-sgwiwHJIDQU/XhswzusUE6I/AAAAAAABtdU/n-FzQqY-y-U7faVAj_G20U3_zMb03AywQCNcBGAsYHQ/s72-c/savings%2Bmistakes.jpg
dearJulius.com
https://www.dearjulius.com/2020/01/7-savings-mistakes-americans-still-make-every-day.html
https://www.dearjulius.com/
https://www.dearjulius.com/
https://www.dearjulius.com/2020/01/7-savings-mistakes-americans-still-make-every-day.html
true
673833072858841524
UTF-8
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy