My parents are paying my tuition so unfortunately I can’t put my school loans in it to accrue interest however would it be worth it to put the money I have now into an account?
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NO it would NOT.
And please read carefully why.
It is NOT to say that saving money is bad, it’s GOOD. And I definitely encourage that. But, it’s the mistake to think that HY savings accounts or CDs is the only way to save money.
The best way to save money is to JUST SAVE. No secret, if you want an easy place to put it, go to your local bank and open a FREE checking account. No interest, no fees, no penalties. Keep in mind that you’re taxed on savings interest, so don’t bother with that.
Further misleading is calling it “high yield”, how high? Still pennies on a dollar, less than 5% today, right? So at $10K, a year will give you less than $500. You can save that easily on your own, tax free, penalty free.
I know it because I DO it. One last reason (least of your concerns, but a reason no less) not get a savings, HYSA, CD account is because, by settling for a crappy rate, you’re allowing banks to lend money even more, which causes inflation.
Inflation means, you pay more, so even if you get 5% interest, costs of living may rise 10-15%. If you didn’t get a CD account, it’d make it harder for banks to further inflation, while you are actively and consciously saving money. I wouldn’t mind having an account that gives 10% a year, but not 5% or less.