Watch your interest rate

Submitted by a LOZO expert
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Other than CDs which lock in an interest rate for a specified period of time, most basic savings accounts have interest rates that fluctuate (this includes money market and "high yield" savings accounts). It's worth taking a look at the current rates each time you get your bank statement to make sure they're still meeting your needs.

One frustrating trick that banks often pull is to slowly reduce interest rates on one type of account hoping that people don't notice. At the same time, they'll usually offer a new type of account with a higher rate (sometimes 2-4 times higher!). You might have started in the best plan (called "Ultimate" or something like that) but months later the new and improved "Super" account is getting all the love, and higher interest to go with it. Often you can switch from one type to the next just by asking, so it pays to keep an eye out. When interest rates are low the difference may not seem that meaningful, but it's still money you're leaving on the table.

If you have a banker who you trust, ask them to keep you abreast of any new opportunities like this. Don't be shy - ask your bank straight-on whether they have any accounts that pay more, and see if you qualify.

Check this chart of the latest bank rates provided by MoneyRates:

A LOZO expert posted this tip.


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