At MagnifyMoney, we believe that Americans can find big savings in boring places.
Consider putting more money into your pocket in one of the following ways:
- If you have credit card debt, move the debt to a balance transfer (if you have excellent credit) or a personal loan (if you have good credit). You can cut the interest rate you pay on that debt.
- If you have a savings account, move your savings from a low interest rate savings account at a traditional bank (paying 0.01%) to a high-yield internet savings account that could pay up to 1.05%.
- Earn cash-back on your everyday spend with a cash-back credit card (you can earn at least 2% on your purchases).
- Stop paying overdraft fees by opening an Internet-only bank account that does not charge overdraft fees
We have run the numbers, and:
- 30% of the population keeps $29,000 in a bank savings account, which pays close to $0. They could earn $300 from an Internet savings account. In addition, they spend $1,269 per month that could earn cash back of $450. So, in total, they could earn up to $750 from savings and cash-back
- 17% of the population has credit card debt (average of $9,500) and excellent credit scores. They could save up to $900 over the next 12 months in balance transfers.
- 13% of the population has credit card debt, a decent credit score (650-700) and pays overdraft fees. They could save an average of $300 over the next 12 months by switching to a personal loan and another $150 by opening an overdraft-free account
- 5% of the country (not counted in the numbers above) heavily uses overdraft and check-cash companies. They could cut $500+ by switching to a branch-free account and eliminating fees.
So, we see at least $450 for 65% of Americans.
We also like to think about it in a slightly different way. Right now, Bank of America has about $500 billion of deposits from consumers, and they pay close to 0%. If Americans moved $100 billion from Bank of America to Internet-only banks, they would receive an extra $1 billion of interest from banks over the next 12 months. And moving money to an Internet-only bank savings account is easy and FDIC insured.
We can put a ton of money back in our pockets, instead of lining the banks’ coffers. Hopefully MagnifyMoney can help you get even a little bit extra, because every little bit helps.
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