How to Grow Your Money and Savings Faster

When it comes to saving money, every penny counts...literally! That's why I want to share one of my favorite, easy financial moves to grow your money faster: opening a high-yield savings account (HYSA). If you're financially able, this is a smart step to make your savings work harder for you! I'm honestly surprised more people aren't talking about this, as it should really just be the norm for most! I'm going to break down why that is along with the bank I recommend using and why below, so stick around and get ready to make a very simple yet very impactful shift to the way you're saving money.

Why a High Yield Savings Account? 

Traditional savings accounts at local banks often offer incredibly low interest rates, usually around 0.05% (or even less). While your money is safe and easily accessible, it's not growing. Enter the high-yield savings account! Your money is STILL easily accessible (compared to a CD or Roth IRA, for example), but the interest rates on these accounts are significantly higher which means your money grows faster without any extra effort on your part.

Obviously, there are some other investment options that can help your money grow even more if you already have a nice nest egg saved up and you're looking for other more long-term options, such as roth IRAs and things your financial advisor can absolutely help you get set up. BUT, if you're looking for a savings account that can help your money grow faster and allow you to fully access those funds at any time, you can set up a high-yield savings account, all on your own, in a matter of minutes.

I'll break down some numbers for you next to give you an idea of how much quicker this can help you grow your money over a regular checking account. If you're ready to dive in, consider using my referral link here and you could score $100 when opening account with Ally Bank!

Let's Break Down the Numbers...

Let's say you have $5,000 sitting in a standard savings account earning 0.05% interest. Over a year, you'd earn just $2.50 in interest, not exactly impressive. Now, if you put that same $5,000 into a high-yield savings account with a 4% interest rate, you'd earn around $200 in interest. That's a huge difference, right?!

What if you have $10,000 in that standard savings account? You'd likely be gaining around $5.00 for the year in your standard savings, but by shifting the high-yield savings, you'd earn around $400. You guys, it's honestly a no-brainer.

My Preferred Bank (for HYS) and Why

I highly recommend checking out Ally Bank for your high-yield savings (HYS) account. One of my favorite things about Ally Bank is how easy it is to open an account. There’s no minimum deposit required, making it accessible for nearly truly everyone. They also offer competitive interest rates, meaning your savings can grow more effectively. Seriously, you can grow your money faster while being completely hands-off. Wild, right?! It's seriously that easy.

I know, I know- it sounds too good to be true, right? Trust me, when I first suggested opening a HYS account through Ally Bank to my husband, he asked, "What's the catch..." and that's what's crazy- there is no catch. After digging into it, researching Ally Bank, and reading as many reviews as I could, we dove in and modestly moved some funds over to test it out. Needless to say, we've had a great experience and have fully shifted our primary savings over to Ally Bank.

While it is solely an online bank with no opportunities for in-person support, I haven't had any issues as I typically do most of my bill payments and such online anyway. Next, let me share one of my favorite features that Ally Bank offers that works so well for us!

The “Buckets” Feature (My Favorite Part!)

I absolutely love Ally’s “Buckets” feature, which lets you divide your savings into different goals, all within one account. Rather than having separate savings account for varying purposes, this allows you to have one primary savings account with "buckets" that allow you to dedicate funds to specific things. Whether it’s for an emergency fund, a vacation, or a special purchase, you can visually see your progress toward each goal. For someone like me, who needs a clear visual breakdown, this is a game-changer.

For example, if I have a bucket set aside for emergencies, I know not to touch it unless absolutely necessary. And if I’m saving for a vacation, once I hit that goal, I can enjoy the trip guilt-free, knowing that money was specifically set aside for it. Otherwise, when all of my savings are in one account without a clear picture of WHAT it is I'm saving for, I struggle with allowing myself to actually SPEND that money because of the "what ifs". Well, if I have a clear visual giving me peace of mind that I have enough in the buckets dedicated to covering those "what ifs", you better believe when the vacation bucket is filled- I am booking that trip without stress or worry. It’s a practical way to manage finances and avoid the temptation to dip into savings for the wrong reasons.

Ally Bank allows you to create up to 30 buckets or savings goals for your one single account. It's a simple, organized way to manage your funds without having to have multiple separate accounts. Within each of those buckets or savings goals, you can also set target goal dates as well if there's a particular timeline in which you are aiming to have the money for a particular purpose. It's honestly amazing and I can't recommend it enough.

Additional Perks: Ally's Savings Boosters

On top of all that, Ally Bank offers some pretty cool "Savings Boosters" to help accelerate your savings even more. These boosters automate savings strategies so you can grow your funds without even thinking about it. Here’s a quick breakdown of the available options:

• Recurring Transfers: You can set up automatic transfers into different savings buckets on a schedule that works for you. This makes saving a seamless, hands-off part of your routine.
  

• Surprise Savings: This booster analyzes your spending to find "safe-to-save" money and automatically transfers it into your savings. It even limits transfers to under $100 and no more than three times per week, ensuring your checking account isn’t impacted too heavily.
  

• Round Ups: Ally rounds up your purchases to the nearest dollar and transfers the difference into your savings account once you've accumulated at least $5. It's a simple way to save little by little without any extra effort!
  

These automated tools are perfect if you want to make steady progress toward your goals without manually moving money around.

Get Started: 

If you’re ready to open an account, use my referral link and you could get $100 just for signing up! The offer is limited to a certain number of people, so act quickly! 

Well, my friend, I hope you found this information useful and feel excited and ready to dive in yourself. If you want to make your savings work harder for you, a high-yield savings account with Ally Bank is a fantastic option. From higher interest rates to the intuitive “Buckets” feature, it’s a tool I love and use myself. Don’t miss out on this opportunity to grow your savings more effectively!