Your options are far and wide when you look past the major banks and physical savings.
2 min read
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In this video, Entrepreneur Network partner Jeff Rose offers some helpful alternatives to putting your savings in a brick-and-mortar bank and bank account. These include:
- Online savings account: Online banking has become more of an option recently. For these online banks, Rose emphasizes making sure they are FDIC-insured. When these online banks do not have brick-and-mortar locations, which come with many attached costs, they may be able to pay more towards things like interest.
- U.S. Treasuries, or T Bills: An old-fashioned choice for some, but still a worthy alternative, especially with the option of easy purchase on the Treasury website.
- Buying stocks that concentrate on dividends: Many of these stocks, when purchased online, can pay single-digit percentages versus the 0.5% or 0.8% of other stocks. These riskier dividend stocks are meant for longer-term investments, and can be an appropriate choice if you are not strapped for money and open to a fluctuating result. There are a myriad of digital options for these stocks, which Rose details in the video.
- Bonds: Rose would concentrate on buying ETFs, though he warns that simply because it is a bond, does not mean that it is safer than a stock.
Finally, Rose shares an anecdote of a friend saving away nearly $150,000 inside his house — and the whopping amount of interest he probably missed out on.
Click play to hear more about saving without a brick-and-mortar savings account.
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