As 20’s Finances continues to grow, I have been getting more and more interaction from my readers. I had one reader contact me and ask what they should do with their money. She claimed that she had a lot of money sitting in her bank account, not getting a high interest at all. She first asked what to do with her money in general and also asked where she should be saving her money. While I have not had to answer questions like this in the past, I found it worth the challenge. I would like to point out that I am not a professional (and my advice cannot be taken as such, nor can I be held liable). With that out of the way, here’s exactly what Cindy (name changed for privacy) had to say:
I read your blog quite regularly and love it! I was wondering if you would be able to help me with my finances. I feel like I am doing okay for myself, but I am not doing anything special with my savings. It is just sitting there waiting to be put to good use. I have heard a lot about online savings accounts, but I don’t know which one to use. Also, I read your post about a Roth IRA and it sounds like a great option for me as well, but where should I start investing?…
Where to Save Your Money
Asking where to save your money is an important question to ask because it shows that you are trying to make the most of your money. It is always a great practice to be proactive. After all, as a young individual, time is on your side with investments since you are asking these questions while you are young.
To be quite honest, I have been meaning to investigate online savings accounts for some time. After reading Cindy’s question, it was the motivation or the kick in the pants that I needed to do some research. I have started making money with my blog and don’t want my money sitting without gaining interest. I plan on using it to cover some of my expenses, but I would rather it be gaining interest while it sits than do nothing. If I had to choose an online savings account, I would choose Ally. Ally offers one of the highest interest rates for online savings accounts and to be quite honest, is significantly higher than where I am keeping my savings (but not for long because I will probably change that soon).
Why I Chose Ally over Others
When it came down to my decision of what the best online savings account would be, it ultimately came down to the interest rate. The primary reason that I chose Ally Bank over others is because of the interest rate. There are no monthly fees (unless you make more than 6 transactions) and it is easy to set up. I opened an account in less than 30 minutes and was able to transfer money into my account without any trouble.
Cindy, if you are looking for a great place to put your money while you contemplate more long term investing goals, opening an account with Ally is a great place to start.