{"id":255,"date":"2022-02-15T11:18:53","date_gmt":"2022-02-15T12:18:53","guid":{"rendered":"http:\/\/marshalllodge.co.uk\/?p=255"},"modified":"2023-11-23T15:13:15","modified_gmt":"2023-11-23T15:13:15","slug":"ditch-your-bank-9-banking-alternatives-that-pay-more","status":"publish","type":"post","link":"http:\/\/marshalllodge.co.uk\/index.php\/2022\/02\/15\/ditch-your-bank-9-banking-alternatives-that-pay-more\/","title":{"rendered":"Ditch Your Bank: 9 Banking Alternatives That Pay More"},"content":{"rendered":"

Did you know the average bank is paying 0.43%<\/strong><\/a> in interest on their savings accounts? That seems crazy enough on its own, but it\u2019s even crazier that my bank is paying even less than that.<\/p>\n

That\u2019s right; my own bank is paying a fraction of the average savings interest rate\u2026.actually .01%. Even worse, my bank (U.S. Bank) has been paying close to the same paltry rate for years.<\/p>\n

I think my bank hates me. Can you relate?<\/p>\n

You can see exactly what I mean in the screenshot below. I have more than $329,000 in one of our savings accounts, and I only earned $2.88 in interest during the month I grabbed this photo.<\/p>\n

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That\u2019s pretty sad when you think about it, but I know I\u2019m not alone. Half the people reading this post are probably earning about that much on their savings, if anything at all.\u00a0<\/p>\n

We all know that interest rates have been hovering at or near record lows for years, and banks can offer almost nothing as a result.<\/p>\n

Fortunately, we don\u2019t have to settle for earning next to nothing on our savings accounts. In fact, there are several banking alternatives to earn more on your savings than what a traditional bank will offer.\u00a0<\/p>\n

One of the options I share in this post is paying 850X more than the average traditional bank!<\/p>\n

Before we dive into the top banking alternatives, though, I do want to say how important it is to have an emergency fund<\/strong><\/a>.\u00a0<\/p>\n

It\u2019s always possible you\u2019ll lose your job or face an unpredictable financial emergency, and your long-term savings could be the only thing that helps you avoid all kinds of financial mayhem (you can check out some of the best savings account rates<\/strong><\/a> here).<\/p>\n

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Some experts say you should have three to six months of expenses stashed away in emergency savings, and I tend to agree. However, I think you need to tailor the size of your emergency fund to your unique situation and needs.\u00a0<\/p>\n<\/blockquote>\n

For example, you may want to have a bigger emergency fund if you\u2019re self-employed or you have kids, whereas you can get away with a smaller e-fund if you\u2019re single, you have really low expenses, or your job is extremely secure.<\/p>\n

Either way, the banking alternatives I\u2019ll dive into below are not for your core emergency savings. After all, you want your e-fund in a secure account with FDIC insurance. You may not earn a lot of interest with a regular bank, but you won\u2019t lose any money from your savings, either.<\/p>\n

Also, note that you can check out my banking alternatives podcast on Spotify if you prefer listening over reading. You can check out the podcast episodes here<\/strong><\/a> and here<\/strong><\/a>.<\/p>\n

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