3 Ways to Increase Your Savings at a Faster Rate

While it’s a good idea to cut out small expenses which can add up to a lot more than you think, there are a number of ways by which you can increase this rate of saving at a much faster pace.

This will mean that you don’t have to curb that impulse you have with buying food or other items that you might normally enjoy.

Having said that, here are 3 easy ways to reduce costs and put more cash in your wallet as a result:

#1: Switch to an online savings account

The standard rate at a brick-and-mortar savings account is 0.01% while this is 1% for online savings accounts. Of course, you won’t get rich but you will earn much more than usual. For example, if you have about $20000 in savings, you’ll earn $200 instead of $2 as a result. Plus, they’re quick to open as well.

#2: Transfer your balance to a 0% credit card

If you have a credit score of 700 points while carrying a balance on a high interest credit card, then you can easily get approved for a balance transfer to a card with 0% interest. The benefits involved with doing this can be significant. For example, if you had a card at a 15% rate and a balance of $9500 while paying $500 a month, you will save almost $1000 in interest if you switched to a 0% interest card.

#3: Increase your insurance deductibles

If you increase your deductibles from $500 to $1000, you can save almost 25% on home insurance premiums. For drivers, they can save almost 9% by doing the same thing. Of course, this can go up to almost 19% since insurance rates vary depending on where you live.