Its tough to make any meaningful return on your savings.
Interest rates for savings accounts have been notoriously low for years.
So, I thought I was doing well making 1.25% on my savings account atMy Savings Direct.
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Now, at least part of my savings is making a 5% APY (annual percentage yield).
And yes, its in an FDIC-insured account.
There actually are several places where you’ve got the option to make 5% on checkingandsavings accounts.
But youll have to meet a few requirements.
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Theyre in a category of their own, and you cant simply deposit your money and forget about it.
These accounts require a little work and organization if you want to get the maximumAPY.
Still, it means making $250 per year instead of 50 cents.
But the last requirement could be tricky.
Northpointe Bank is located in Michigan, but anyone can open an account online.
Keep that much in the account and youll collect over $1,000 annually in interest alone.
But the requirements for this account are not easy to meet.
Normally, there are strict geographical or employment criteria for joining a credit union.
ButCCU says anyone can join.
You just have to pay a one-time $5 fee to become a Consumers Cooperative Association member.
To get it, I applied for aNetSpend debit Visa card.
As long as I do this periodically, I avoid a 90-day $5.95 inactivity fee.
I also opted for the pay-as-you-go plan for the card it has no monthly fees.
Interest is paid quarterly.
There are a few other prepaid card savings accounts that pay around 5% interest.
Some have additional requirements.
Some also have monthly fees that can reduce your return.
To get your money back out of these accounts, transfer it from savings to the debit card account.
Then transfer it to your regular checking account.
Quick warning: there arereports of transfer problemswhen trying to fund the account fromsomebank accounts.
Or, youll have to spend it using the debit card.
Most of these accounts only pay the high interest rates on balances of $5,000 or less.
If you have substantial savings, you may want to open several accounts.
But, thats just the way it is in this low-interest-rate environment.
You have to exercise your organizational skills to make 5% on checking and savings accounts.
Steve Gillman is the author of 101 Weird Ways to Make Money and creator of EveryWayToMakeMoney.com.
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