The Best Banking Products You Should Be Using in 2024
We all know about checking accounts, savings accounts, and credit cards—but did you know that there are other, often overlooked banking products that can help you save, grow your wealth, or just make life easier? Let’s dive into a few that you may want to consider using in 2024.
1. High-Yield Savings Accounts
You’ve probably heard me talk about high-yield savings accounts before, but I’m going to say it again: if you’re not using one, you’re leaving money on the table. With interest rates in the 3-4% range, compared to the typical 0.01% you might get from a traditional bank, switching to a high-yield savings account can make a real difference. Plus, they’re safe and easy to access. I’m talking about accounts from places like Sofi Bank, Marcus by Goldman Sachs, Ally Bank, and American Express National Bank. In some cases, you can earn upwards of 3.80% APY, which is a far cry from what most brick-and-mortar banks offer. My Top High Yield Savings Accounts.
2. Certificates of Deposit (CDs)
If you’re looking to park some money and not touch it for a while, Certificates of Deposit (CDs) can be a great option for you. You agree to lock your money away for a set period (anywhere from a few months to several years), and in exchange, you get a guaranteed return, usually higher than savings accounts or even money market accounts.
Currently, you can find 1-year CDs with interest rates around 4.50% APY and longer-term CDs offering even more. The key here is to know that you can’t touch that money for the length of the term, or you’ll face penalties. But if you’re sure you won’t need the cash, they can be a safe, predictable way to grow your money.
3. Cash Management Accounts (CMAs)
Another lesser-known product that’s gained popularity recently is the Cash Management Account (CMA). These accounts blend the features of a checking account, a savings account, and an investment account. Think of it as the best of all worlds: you can earn higher interest rates (sometimes 2-3% APY), and the best part is, they often come with no monthly fees or minimum balance requirements.
Companies like SoFi, Wealthfront, and Chime offer cash management accounts that allow you to earn a decent return on your deposits while giving you easy access to your money. You can make transfers, pay bills, and even use a debit card, all while earning interest on the balance.
4. Investment Accounts with Automatic Contributions
I get it—saving for the future isn’t always easy, especially when it feels like you’re just getting started. But with tools like automatic contributions, it can be a lot simpler. Whether it’s a brokerage account, an IRA, or even a robo-advisor account like those offered by Betterment or Wealthfront, setting up automatic deposits ensures you’re building wealth even when life gets busy.
By automating your contributions, you’re making investing a regular habit. Over time, it adds up—especially if you’re investing for the long-term. And these accounts typically allow you to invest in diversified portfolios that automatically rebalance, so you don’t have to worry about making decisions every time the market moves.
In short, there are a ton of banking products out there that go beyond the basics of a checking account. Whether you’re looking to save more, earn higher returns, or make managing your money easier, these banking products are worth considering. Get started with a high-yield savings account, explore a certificate of deposit, or check out a cash management account, and you’ll be setting yourself up for financial success in 2024.
