Updated 4:57 PM PST, Mon July 14, 2014

Alternatives To Savings Account

Banking 101

You've got your Savings, Checking and maybe an Emergency fund. But how else can you get the most out of your bank? Here are our top tips:

- Set up automatic transfers - this can help you save fast! If you set a timer to move $50/week to an account you've promised not to touch, you'll save $1200 a year (before interest).

- In addition to other saving opportunities, many banks also offer auto, home and personal loans with lower interest rates than you'll find at a dealership or through a broker. It's important to remember how much interest can increase your monthly payments, so if you're looking to make a purchase like this, plan on researching a bank you trust and opening an account.

- For a more obvious reason, banks have the ability to protect your cold hard cash much better than you. If your cash gets stolen, there's no security blanket or chargebacks you can order. You're just left dealing with the loss. Putting your money in a federally-insured financial institution is a great way of ensuring protection.

The most appealing three-year CDs, which have about 1.95%, are reduced, but at least double as large as the greatest high-return savings rates. And the greatest five-year certificate of deposit rates are as large as 2.25% -- maybe not great, perhaps not even excellent, but it surpasses a savings deposit. The higher the CDs rate, the longer you usually have to have it on loan to the bank. This means a hefty withdrawl fee. If you are going this path, try to find a certificate of deposit that's a comparatively modest withdrawal fee.

These accounts usually offer just marginally better rates than conventional savings accounts. It's possible for you to find a bank with interest rates at 1% or 1.50%, which may not sound spectacular, but it's still much bigger than a normal savings account.

P2P giving is the most unconventional form of banking. Here's how it operates. Through websites such as Financing and Prosper Club, you'll be able to loan cash to people who want cash for everything from bill consolidation to auto loans. Your investing isn't FDIC-insured, but yield rates can average over 9%. It's possible for you to reduce your threat by simply giving to people who have high FICO scores.

Stowing your money in savings deposit might surpass stuffing it into your mattress, but maybe not by significantly. And risk-free options abound. Comprehending your desire for danger and wages along with benefit and the threat of any expense vehicle will help direct you in choosing one. There's bound to be an alternative that enables you never to only keep your cash, but allow it develop for you and still matches your brink of threat.