King Cash

Finding the best rate on savings or money market account is as easy as counting your pennies (okay a bad simile). These days people are holding on to their cash as much as possible and finding the best place to park it and grow is a tiresome task. Currently the best interest rate is below 2% which means you won’t grow your money as fast. However interest rates will rise when Federal interest rate rises back up, when that will happen is unpredictable. To start you can use this website: www.bankrate.com/. Before you start putting your cash in a savings or money market account (whether it be brick & motor or online is up to you) there are certain things you need to know:
1. Is the bank/credit union legit?
2. Is the bank or credit union FDIC insured?
3. Check their minimum balance to avoid fees including overdraft, ATM, wire transfer, and other fees.
4. Get the highest rate possible to grow your cash.
5. Check special rewards like flyer miles for holding cash in their account.
6. Check how often you can access your cash online.
Holding a bunch of cash is a great thing but it won’t mean much when inflation rears its ugly head in the coming years, thus eroding the purchasing power of the dollar and your cash. For short-term purposes holding cash is better but investing it in higher yielding securities like stocks or gold helps with growing wealth and preserving capital. To determine the amount of cash you should hold and your portfolio, this is the ideal ratio (5% Cash/ 10% Gold/ 85% Equities). Why gold? Gold hedges against the dollar and is protects your wealth against inflation.