SAN DIEGO (KGTV) — Saving money right now could pay off in the long run. That’s because interest rates in your savings account could go even higher.
“In this environment where rates are going up, that is benefiting savers,” says Mark Hamrick, Senior Economic Analyst at Bankrate.com.
Hamrick says look for a high-yield savings account online.
“This is where we are seeing yields rise the most. The good news is, it’s easy to shop online to find those rates,” he adds.
“I try to put money away every month. It just depends whatever I have left, says Marilyn Nostrand of El Cajon.
Norstrand says she has noticed more returns coming from her savings account and plans to continue saving for a home.
Meanwhile Hamrick says the type of savings account you will need depends on how much access you want to the money and low long it will stay there.
“In the case of rapid access, those are the things advised for emergency savings and we think of money market accounts or interest baring checking accounts,” he says.
Many money market accounts on Bankrate.com are at 2 percent. So if you deposited 1,000 dollars, the annual return would be 20 bucks.
“But for those who want to park their money for a long period of time, then you are talking about a 1 year or 5 year CD,” adds Hamrick.
ABC 10 News found the CDs online are a little higher at 2.75 percent. So your return would be 28 bucks on that 1,000 dollars for 1 year. If you leave money in the account longer like 2 years, it goes up to 3 percent or more.
Experts say may want to leave money in the bank, because interest rates are likely to keep rising until next year.