Hello Penny Hoarders,
I've been reading on the different types of savings account available and wanted to take a moment to say what I personally think is the best option because there is so much information out there! I believe that the best vehicle for saving money is an Online (high yield) Savings Account. These accounts offer anything at/above 2%. Personally, I use Marcus by Goldman Sachs which offers 2.15% but Wealth front also has a very good savings account which offers 2.5%
The best part about using an Online Savings Account is that the rate of return is guaranteed. This can be a great way to hedge against a potential drop in the stop market. Even if the stock market falls 20% in the next year, your money in the Online Savings Account will still go up by the guaranteed rate of return. This allows you to build an emergency account that grows every year so that you can invest money with a peace of mind.
What do you think of these savings tools?