With high interest savings accounts paying out at 4.5% currently, it is a great time to establish those emergency savings accounts!
Here at Teachers Stacking 10’s, like many other financial gurus, we recommend having a few months income built up in a savings account that is easy to access. Experts vary in how much is the ideal amount and it is different person to person but you can find amounts that range from 3 to 12 months! Starting off this is a daunting task as your just trying make ends meet. Do not feel bad if you don’t have this part of your finances locked in! We are a bit unique as teachers in that our jobs are far more secure than other jobs in the private sector. The threat of teacher lay-off (while not zero) is very low, and even so it’s a market saturated with jobs now…
But I digress, many of us don’t have 3 months of savings built up for those big and sometimes unplanned purchases in life. A costly car repair, braces for your teenager or replacing appliances, life has a way of throwing those things at us when we aren’t necessarily prepared for it. So take the leap now to get prepared!
With the increase in interest rates we are finally seeing some savings accounts getting some decent returns. Not as much as what you’d expect in a high yield index fund but 4 – 5% is still very solid growth for your emergency cash flow.
Check out Nerd Wallet’s list of the best online savings accounts right now
That’s a great list, personally I’ve been enjoying my capital one 360 savings account that I’ve had for years. Mobile check deposit is great and 4.3% interest rate is even better! I took the initiative this summer to build up that emergency fund to have some more security in life and to take advantage of some high interest rates! What interest rates is your savings account getting right now? Could it be doing better? Is it time to research some online options? It’s a great time to do some research and check things out!
If you’re still a bit cautious about getting into the market and investing, now’s a great time to set up that savings account!
Keep Stacking!