September 11, 2023
WalletHub recently published an article featuring Senior Lecturer of Finance, Aaron Stevens, discussing the importance of saving money right now.
When first looking to set up a savings account the biggest and most common mistake people make is not avoiding fees. You can have good monthly saving options without all the fees. Since mutual banks and credit unions do not have to earn profits for corporate stockholders, they are often the best. It is a good idea for everyone to have an emergency fund, which can easily be accessed and there is no risk of losing it.
“The best way to protect against inflation is by putting your emergency fund into Series-I savings bonds, which are inflation-protected bonds from the US Treasury,” Stevens suggests.
Ultimately, people should be putting their money into mutual banks and credit unions because they don’t need to earn profits. As a result, any “profit” earned by the bank is distributed to the depositors in the form of higher interest rates and lower fees. In comparison with savings accounts or certificates of deposits, Series-I bonds are risk-free and easy to purchase.