Top 10 Money Moves For Your Cash Savings Other Than Big Banks

Many people believe that keeping their money in a big bank is the safest and most secure option. However, when it comes to larger sums of money, such as $10,000 or more, big banks may not always be the best choice. There are several reasons why storing such a large amount of money in a big bank may not be ideal. So let's  explore some of the drawbacks and alternative options that could better serve you.

One of the main reasons why big banks may not be the best place to keep a large sum of money is due to their low interest rates. Big banks typically offer lower interest rates on their savings accounts and certificates of deposit (CDs) compared to other financial institutions. This means that your money will not grow as quickly or as significantly as it could in a different type of account.

Drawbacks 

• For example, the average interest rate on a big bank savings account is around 0.05% to 0.10%, while some online banks and credit unions may offer rates as high as 1.00% to 2.00% or more. If you were to keep $10,000 in a big bank savings account with a 0.05% interest rate, you would only earn around $5 in interest after one year. In comparison, if you were to keep the same amount in an online bank savings account with a 1.00% interest rate, you would earn $100 in interest after one year – a significant difference. But what's even better nowadays is a high-yield savings or checking account earning up to 5%
•  Another drawback of big banks is their fees. Big banks often charge higher fees for various services, such as account maintenance fees, overdraft fees, and ATM fees. These fees can quickly add up and eat into your savings, especially if you are keeping a large sum of money in your account.
•  Furthermore, big banks may have stricter requirements for maintaining high balances in order to avoid fees or qualify for certain benefits. For example, some big banks may require you to maintain a minimum balance of $10,000 or more in your savings account to avoid a monthly maintenance fee of $25 . If you were to keep $10,000 in a big bank savings account and were unable to meet the minimum balance requirement, you could end up paying $300 in fees each year.

 In addition to low interest rates and high fees, big banks may also lack the personalized service and attention that you may receive from a smaller financial institution. When you have a large sum of money to manage, you may want to work with a bank or credit union that can provide you with tailored financial advice and support. Big banks are often more focused on serving a large volume of customers and may not be able to provide the individualized attention that you need unless it involves one of their investment opportunities.

Banking Options to Consider

So, what are some alternative options to big banks that may better serve you when it comes to storing $10,000 or more? One option is to consider online banks or credit unions. Online banks typically have lower overhead costs compared to traditional brick-and-mortar banks, which allows them to offer higher interest rates and lower fees to their customers.

• Many online banks also offer convenient features such as 24/7 account access, online bill pay, and mobile banking apps. This can make managing your money easier and more efficient, especially if you prefer to do your banking online or on-the-go. And most importantly FREE checking and savings accounts.
•  Credit unions are another alternative option to big banks that may be more suitable for storing a large sum of money. Credit unions are member-owned financial institutions that often offer higher interest rates on savings accounts and CDs, as well as lower fees and personalized service.

 In addition, credit unions are typically more community-oriented and may be more willing to work with you to meet your financial goals. By becoming a member of a credit union, you may have access to exclusive benefits and perks.

10 Ways to Make Your Money Grow 

When it comes to storing a significant sum of money, such as $10,000 or more, it's important to carefully consider your options to ensure that your funds are safe, secure, and working for you. While big banks may not always be the best choice due to their low interest rates, high fees, and lack of personalized service, there are several alternative options to consider for safe money investments.

Another option to consider when storing $10,000 or more is investing in the stock market or other financial assets. By investing in stocks, bonds, mutual funds, or other assets, you can diversify your portfolio and potentially grow your wealth over time. It is important to consult with a financial advisor or investment professional before making any investment decisions to ensure that you are making informed choices that align with your financial goals and risk tolerance.

Here are Ten Options to Explore:

1.  High-Yield Savings Accounts: Online banks and credit unions often offer high-yield savings accounts with competitive interest rates (currently up to 5%) that can help your money grow more quickly compared to traditional brick-and-mortar banks.
2.  Certificates of Deposit (CDs): CDs are a low-risk investment option that can provide a guaranteed return over a set period of time. Look for CDs with favorable rates and terms to maximize your earnings with current interest rates of (4.80%)
3.  Money Market Accounts: Money market accounts combine the benefits of a savings account with the higher interest rates of a CD, offering a safe and flexible option for storing your money. (Current rates up to 2.0%)
4.  Treasury Securities: U.S. Treasury securities, such as Treasury bonds, notes, and bills, are considered very safe investments backed by the full faith and credit of the U.S. government. They can be purchased directly from the U.S. Treasury or through a broker. (Currently 10 yr. rate of 4.16%)
5.  Municipal Bonds: Municipal bonds are issued by state and local governments to fund public projects and infrastructure. They offer tax advantages and are generally considered safe investments.(Currently 10 yr. rate of 3.15%)
6.  High-Quality Corporate Bonds: Investing in high-quality corporate bonds issued by stable companies with strong credit ratings can provide a steady income stream while preserving your principal. (Currently at 4.72%)
7.  Real Estate Investment Trusts (REITs): REITs are companies that own and manage income-producing real estate properties. Investing in REITs can provide diversification and potentially high returns.
8.  Dividend-Paying Stocks: Investing in dividend-paying stocks of established companies can provide a source of passive income and the potential for capital appreciation. While there is some risk involved with investing, it can also provide the potential for higher returns compared to keeping your money in a savings account or CD.
9.  Exchange-Traded Funds (ETFs): ETFs are baskets of securities that trade on an exchange like a stock. They offer diversification and lower costs compared to mutual funds.
10.  Consult with a Financial Coach or Advisor: Consider seeking to help you develop a customized investment strategy based on your financial goals, risk tolerance, and time horizon.

By exploring these ten options for safe money investments, you can find the best solution to store your $10,000 or more in a way that aligns with your financial objectives and priorities. It's essential to conduct thorough research, seek professional advice when needed, and regularly review and adjust your investment portfolio to ensure that your money is working efficiently and effectively for you.

In conclusion, big banks may not always be the best place to keep a large sum of money, such as $10,000 or more, due to their low interest rates, high fees, and lack of personalized service. By considering alternative options such as online banks, credit unions, or investing in financial assets, you can potentially earn higher returns, save on fees, and receive the support and attention that you deserve.