I have tried for a few years now to get my parents to switch from their traditional low-interest brick and mortar savings account. However, they are stuck in their low minimum investing lifestyle. They simply have no desire to learn about investing because they were raised in a time when you worked hard and then harder for your money.

Many people never start investing because they feel to silly to ask about investing. The average person simply does not want to seem foolish or stupid. Therefore, they just go about their days not learning how to make their money work for them in better ways.

In my opinion, the traditional savings accounts and money market accounts that offer tiny, tiny, tiny, interest are old news. There simply is no reason anyone with computer access should not have a high-yield online savings account instead of a useless brick-and-mortar savings account.

With that being said, one of the most under appreciated markets I have come across in the past year is the world of high-yield savings accounts mainly offered by online banks. ING DIRECT as an example offers a 4.50% interest rate on a simple basic savings account. Compare that to what many of you reading this probably get in a typical savings account from your hometown bank and I think you will find a huge difference.

Setting up a high-yield online savings account is very simple and can be linked directly to your current checking account. This makes it simple and easy to transfer money to and from each account and of course they are all FDIC insured. Also, one other big advantage with a high-yield online savings account compared to a typical money market savings account is that there are hardly any restrictions on accessing your money.

So if you are the very conservative type when it comes to investing a high-yield online savings account may be your perfect fit.

lucky-dog-investing.com
Author: Chad Surges
Degree: Bachelor of Science (Business)
Career: 10 years as a Logistics Executive