Cash News
With the holidays right around the corner, it’s crucial to look for opportunities to maximize your holiday savings. According to a recent Gallup poll, Americans will spend an estimated $1,012 this holiday season — up from $975 last year.
One strategy you can use to meet your holiday savings goals is putting your money in a high-yield account. The more interest your balance earns, the faster it will grow. And now, Marygold & Co. is offering a new cash account that allows you to earn 6% APY.
Read on to learn more about this account and how it works.
Marygold & Co. is a financial technology (fintech) company that offers a wealth management mobile app designed to help users manage their finances efficiently. The app provides features such as fee-free banking, investing, budgeting, and spending tools.
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This week, the company launched a cash account to help customers boost their holiday savings. You can earn up to 6% APY on your balance — more than 13 times the national average rate for traditional savings accounts.
This account is available to new and existing Marygold & Co. customers. There are no minimum balance requirements or early withdrawal penalties.
This Marygold & Co. app also offers customers helpful money management tools. These include “money pools” that give account holders a way to organize their funds into different categories based on their individual savings goals, as well as set personalized daily, weekly, and monthly spending limits to help them stick to their budgets.
Some of Marygold’s other tools include a savings hub that allows customers to view their savings goals and progress all in one place and an investment calculator that provides users with pre-made portfolios curated to meet their risk tolerance and investment goals.
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This new account offered by Marygold & Co. is a cash management account (CMA), not a traditional savings account. Cash management accounts often combine some of the features of checking and savings accounts, such as interest earnings, bill pay, debit cards, and online transfers. However, they’re typically offered by brokerage and investment firms rather than banks. CMAs also tend to provide more competitive interest rates and higher FDIC insurance limits and are not subject to withdrawal limits imposed by many banks.
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Before opening any new account — whether it’s a savings account, cash management account, or other type of bank account — there are a few major factors you’ll need to consider:
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Annual percentage rate (APY): Your account’s APY represents the annual return on your account balance when factoring in compound interest. A higher APY means your money has a greater opportunity to grow over time. It’s important to remember that savings APYs are generally variable and can fluctuate due to a number of factors. So, while a competitive APY may be why you’re drawn to a specific account, you should ensure that it is a good fit beyond the current interest rate.
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Fees: Account fees can eat into your savings and reduce your return. Review the account’s fee structure and find out what you need to do to avoid incurring fees.
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Minimum deposit and balance requirements: Your financial institution may require you to deposit a minimum amount of money to open an account and earn the highest advertised rate/avoid fees. Before committing to an account, be sure you can easily meet any minimums.
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Deposit insurance: Finally, it’s important to check that your money is protected in case the financial institution fails. Bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC) and accounts held at credit unions are insured by the National Credit Union Association, up to $250,000. That is, as long as you’re banking with a federally insured institution. Meanwhile, most investments are not insured at all. Before putting your money into a financial product, find out how the funds are protected — if at all.
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