The Clinton Herald, Clinton, Iowa

Lifestyles

July 29, 2013

Online banks may help you boost your savings plan

Putting money away for a rainy day appears to be one of those quaint notions of the past, like Sunday dinner with the family or a hot meal on an airline flight. Currently a growing number of people live paycheck to paycheck. An unexpected expense can be catastrophic.

According to the U.S. Commerce Department, in 1970 Americans saved around 10 percent of their disposable income – disposable incoming being what is left after paying taxes, mortgage, insurance and other fixed expenses. In January 2013 the savings rate was down to 2.2 percent.

Data compiled by financial website NextAdvisor.com shows the average U.S. household has only $3,800 in savings. More distressing, 25 percent of households have no savings at all.

Saving money, of course, starts with a budget. You have to track your income and expenses and end up with a positive balance at the end of the budget period. Cutting expenses and increasing income will increase the amount of money that can go into savings.

Where to put your money

But where do you put your savings? Banks now have minimum deposit requirements and a host of fees that have discouraged some from opening savings accounts. The paltry interest paid is not much of an incentive either.

Polina Polishchuk, an editor at NextAdvisor, suggests looking at opening a savings account in an online bank. Unlike a traditional bank, she says online banks are more consumer-friendly.

“That's why we were for online savings accounts,” Polishchuk said. “They don't have fees. There's no minimum balance requirement, or requirements for how much money you have to deposit into the account every month. And the interest rates they pay are much higher than regular banks.”

They do pay a higher interest rate – though it can be considered high only in comparison to what traditional banks pay. The annual percentage yield (APY) is still under 1 percent. Still, it beats what the big banks are paying.

Text Only
Lifestyles
  • Choral group marks 10th anniversary CLINTON -- A Clinton choral group will celebrate its 10th anniversary this weekend. RiverChor will celebrate the anniversary at 2 p.m. Sunday at Zion Lutheran Church. The concert is free, but donations will be accepted. A reception will be held in th

    April 21, 2014

  • Camanche to host citywide garage sales CAMANCHE -- St. Mark's United Methodist Church will organize citywide garage sales scheduled for May 2 and 3. Those wishing to participate and have their garage sale listed in the advertising may obtain forms at Clinton National Bank, Citizens First

    April 24, 2014

  • Bald eagles Britton to present on lead effects MAQUOKETA -- A National Wildlife Refuge manager will present a program on lead's effects on bald eagles. Ed Britton, U.S. Fish and Wildlife Refuge manager, will deliver the presentation at 2 p.m. Sunday, May 4, at Hurstville Interpretive Center in Ma

    April 24, 2014 1 Photo

  • Spring flea market is April 27 MAQUOKETA -- The annual Spring Flea Market, Antique, and Collectible Show will be Sunday, April 27, at the Jackson County Fairgrounds in Maquoketa. The show has been in existence for 27 years and is one of Iowa's largest shows with more than 150 sell

    April 24, 2014

  • Human trafficking Stickers highlight human trafficking CLINTON -- Area establishments are receiving added decor this week thanks to an anti-trafficking committee. Sisters of St. Francis Center for Active Nonviolence and Peacemaking Anti-Trafficking committee members are placing stickers in local establis

    April 23, 2014 1 Photo

  • Cats outsmart the researchers

    I knew a lot had been written about dogs, and I assumed there must be at least a handful of studies on cats. But after weeks of scouring the scientific world for someone - anyone - who studied how cats think, all I was left with was this statement, laughed over the phone to me by one of the world's top animal cognition experts, a Hungarian scientist named Ádám Miklósi.

    April 22, 2014

  • Calling all munchkins CLINTON -- The Clinton Area Showboat Theatre is looking for munchkins. Local auditions will be held from 6 to 8 p.m. Monday, May 19, at the Showboat for munchkins in the upcoming "The Wizard of Oz" performance. Munchkins may be of any age as long as

    April 22, 2014

  • St. Paul grants Church awards grants

    CLINTON -- An area church recently awarded area organizations with grants. The Bickelhaupt Arboretum, the Felix Adler Children's Discovery Center, First Circle Friends, YWCA, Voices for the Land/Monarch Teacher Network and Haley Westerkamp were grant

    April 22, 2014 1 Photo

  • On Iowa program selects Clinton residents CLINTON -- Four Clinton residents recently were named On Iowa student leaders. Keaton Fuller, Jacinta Jargo, Kenya Lewis and Allyson Naeve were among 235 people selected to serve as welcomers to new first-year and transfer students at the University

    April 22, 2014

  • Screen shot 2014-04-18 at 4.44.15 PM.png Paint, doodle and sketch: 3 apps for art lovers

    In the absence of a palette of watercolors and a sketchpad, these three apps can fill in as your art supplies of choice.

    April 19, 2014 1 Photo

Elections
Front page
Clinton Herald Photos


Browse, buy and submit pictures with our photo site.

Poll

Should the city of Clinton appeal the open records violation ruling that will cost taxpayers $40,600?

Yes
No
     View Results
AP Video
Olympics 2014
Featured Comment
Featured Ads
Blue Zones Project
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.