Relax and take use of the long weekend on Labour Day. Many people’s holiday plans include barbecuing outside while the weather is still pleasant, spending time with loved ones, or doing nothing at all.
However you choose to spend your Labour Day weekend, you might want to set aside some time to execute a few wise financial decisions. After all, organising your finances can help you feel less stressed. Making one or more of these decisions will also enable you to grow your hard-earned money, which is a bonus.
3 good financial decisions to make this Labour Day
These are three smart choices you might want to think about this Labour Day:
Open a CD with a top APY
This Labour Day, if you don’t already have any of your funds deposited into a certificate of deposit (CD), you might want to think about doing so. A CD is a low-risk investment choice that provides a fixed interest rate over a certain amount of time, meaning you earn returns on your money that are guaranteed.
A CD is a wonderful investment right now because rates are significantly higher than they were at this time last year, especially if you’re looking for a short-term investment. In fact, many short-term CD rates are more than 5%, giving investors the chance to earn a lot more income than they would in traditional savings accounts.
Although some of the greatest APYs are now offered by short-term CDs, CDs really exist in a variety of durations, from a few months to several years. Choose a term that fits with your financial goals and schedule if you’d prefer to invest for a longer period of time.
Just bear in mind that while CDs provide security and consistent earnings, early withdrawal fees are frequently associated with them. Therefore, only invest funds that you can afford to keep idle for the duration of the period of investment.
Put your funds in a savings account with a high rate
You’re losing out on a simple opportunity to earn a high rate of interest if you still have your money in a regular savings account, and it’s possible that your interest earnings aren’t keeping up with inflation. There are considerably better possibilities than the current 0.43% average interest on regular savings accounts.
Instead, think about transferring your funds to a high-yield savings account. These accounts are a great option for storing your short-term savings or emergency money. The benefits of a high-yield savings account are similar to those of a regular savings account, but you will often receive a much greater interest rate.
Find a bank or other financial organisation that offers a high-yield savings account that works with your financial plan this Labour Day. Nowadays, several companies offer high-yield savings accounts with interest rates above 4.5%, which is roughly ten times what you’d make with a regular savings account.
Starting with online banks is a terrific idea. These banks have fewer operating expenses than traditional banks, which enables them to offer their clients higher interest rates as a result of the cost savings. They are therefore an appealing choice for people looking to increase the return on their idle funds. However, if you’d prefer to bank in person, there are a lot of other excellent options from credit unions and traditional banks as well.
Take a look at a money market account
The week of Labour Day is a perfect time to research the products and interest rates offered by various financial institutions. Most people would be wise to create a money market account now since rates are significantly higher than they have been in previous years. The majority of money market rates, however, are now less favourable than those offered by the best CDs or high-yield accounts.
However, before creating any form of account, including money market accounts, you should always conduct your research. Even though these accounts are typically regarded as low-risk, it’s still important to find out if there are any fees or minimum balance requirements attached to account maintenance.
The conclusion
Take some time this Labour Day to review your financial goals and think about implementing one or more of these wise decisions to improve your financial well-being. These easy steps can help you maximise your savings and earn more interest on your hard-earned money, whether you choose a short-term CD, a high-yield savings account, or a money market account. Always do your homework, shop about for the greatest deal, and decide on the course of action that best suits your financial situation and goals.
