How to Get 6.25% for Your Savings Today

When I look at the best savings account rates, the whole notion of “high interest” is just laughable. How can you call something high interest when it can’t even match the inflation rate? This is sad, especially for those who keep a lot of money in these accounts.

Do you know why?

If you put in $10,000 into these so called high yield savings account today, you’ll actually have less buying power as the days go on.

For example, if the interest rate is 1.30% per year and the inflation rate is 2.30% per year, your savings is earning you -1.00% in real buying power (yes, negative 1 percent).

Since I already have my emergency fund in place, I have been paying down my car loan instead of putting it into my bank. My car loan is costing me 6.25%, so by paying it down faster I am earning more for my savings!

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