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How your money could grow in a high-yield savings account

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  • We did the math to find out how a $10 initial deposit could grow at a 1.75% interest rate in a high-yield savings account if you contribute an additional $10, $100, or $1,000 a month.
  • Since the summer of 2019, the Federal Reserve has cut interest rates multiple times and the earning potential on savings accounts has dropped, but many high-yield accounts are still a great deal.
  • A good high-yield savings account can still earn up to 20 times more than a typical savings account and ideally doesn’t charge maintenance fees.
  • Read more personal finance coverage.

The best high-yield savings accounts live up to all the hype. After all, what more could you need in a savings account than no fees, zero risk, full liquidity, and excellent earning potential? 

Whether you’re building up an emergency fund, saving for a down payment, or preparing for your next Euro trip, it’s hard to go wrong with a high-yield savings account.

Since the summer of 2019, the Federal Reserve has cut interest rates multiple times and the earning potential on savings accounts has dropped as a result, but many high-yield accounts, like Betterment’s and Wealthfront’s cash accounts, are still a great deal. If anything, the Fed’s rate cuts serve as a good reminder to choose a savings account for all its features, not just the APY.

To see how an initial balance of $10 plus additional monthly contributions of $10, $100, or $1,000 would grow at in a high-yield savings account, we plugged the numbers into the compound interest calculator on Investor.gov. These calculations assumed an interest rate of 1.75%, compounded monthly. This rate is a good representation of the earning potential on some of the best high-yield savings accounts right now — Ally’s online savings account earns 1.70% APY, Betterment’s earns 1.78%, and Wealthfront’s earns 1.82%.

Below, you’ll see the total balance (your contributions plus your interest payments) at the end of one year. Note that the interest on this account is compounded monthly and we assume no withdrawals are made from the account.

How $1,000 will grow in a Wealthfront Cash Account v2


Ruobing Su/Business Insider


The calculation assumes a constant interest rate of 1.75%, but remember that interest rates are variable. Regardless, the takeaway is the same: The more you save, the more you earn.

While there are rules of thumb for how much you should be saving in retirement accounts and in your emergency fund, financial planners recommend starting wherever you can. No amount is too small, and once you start, it’s easier to keep going.

To make saving feel effortless, consider setting up automatic transfers from a checking account or even directly through your payroll provider. When you save off the top, you quickly adapt to living on less.



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9-year-old Colorado boy asked Pete Buttigieg how to come out as gay

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  • Pete Buttigieg counseled a nine-year old boy who wanted advice on coming out as gay to everyone.
  • “Would you help me tell the world I’m gay, too? I want to be brave like you,” Zachary Ro asked Buttigieg at a campaign rally in Colorado.
  • “I don’t think you need a lot of advice from me on bravery, you seem pretty strong,” Buttigieg responded.
  • Then the former mayor lauded the nine-year-old and said others would benefit from his courage to come out.
  • Visit Business Insider’s homepage for more stories.

Democratic presidential candidate Pete Buttigieg had an emotional moment on Saturday night with a nine-year old boy who asked him for help to come out as gay. 

During a Q&A session where questions were drawn from a fishbowl, the boy, later identified as, Zachary Ro, thanked the former mayor of South Bend, Indiana for his bravery and sought help from Buttigieg on coming out.

“Would you help me tell the world I’m gay, too?” Ro asked the first openly gay presidential candidate, adding, “I want to be brave like you.” 

 

The Democratic hopeful lauded Ro’s emotional strength and cited his own turbulent journey to share the truth with loved ones about his identity.

“I don’t think you need a lot of advice from me on bravery, you seem pretty strong,” Buttigieg responded.  “It took me a long time to figure out how to tell even my best friend that I was gay, let alone go out there and tell the world. And to see you willing to come to terms with you who you are in a room full of thousands of people you never met, that’s really something.”

Then the former mayor offered advice to Ro.

“Let me tell you a couple things that might be useful. The first thing is that it won’t always be easy, but that’s okay because you know who you are.,” Buttigieg said. ” And that’s really important because when you know who you are you have a center of gravity that can hold you together when all kinds of chaos is happening around you.” 

Buttigieg also told Ro that others would benefit from his courage.

“The second thing I want you to know is that you will never know who’s taking their lead from you, who’s watching you and deciding that they can be a little braver because you have been brave.” 

The Colorado Sun reported that Ro decided to ask Buttigieg the question at the last minute, but was happy he did so.

“It was exciting, and I felt really happy,” the boy told the paper after the rally. “I was glad I was able to tell everyone in the audience that I’m gay.”





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Products that are a waste of money you should stop buying immediately

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  • Some items we’re used to buying every day can actually be a huge waste of money.
  • Store-bought greeting cards, physical books, cable TV, and premium gasoline are just a few examples.
  • Bigger purchases, such as a boat or a time-share, often aren’t worth the cost either.
  • Visit Business Insider’s homepage for more stories.

Waste not, want not.

We make so many purchases that we don’t always realize what we are buying — and how we could be saving money. If we take a step back and think about all of our additional costs, we could cut a few out of our lives. 

These 24 products can often be a huge waste of money:

Matthew Michaels contributed to the original version of this article.



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How the Diamond Princess cruise ship coronavirus quarantine went wrong

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Passengers on the Diamond Princess cruise ship got their first piece of bad news on February 4: Ten people onboard had tested positive for the novel coronavirus.

It was the beginning of a two-week ordeal of quarantine orders and disease response that has been widely criticized as a failure. On Friday, Japan’s Ministry of Health reported that 634 people from the ship had tested positive for the virus. The US Centers for Disease Control and Prevention (CDC) reported an additional 18 cases from the ship, with an expectation that more will arise. 

Two people have died.

“The quarantine was not justified, and violated the individual rights of the passengers while allowing the virus to literally pick them off one-by-one,” Dr. Amesh Adalja, who works at the Johns Hopkins Center for Health Security, told Business Insider in an email.

Adalja and other experts have criticized the decision to keep passengers and crew on the ship and said poor hygiene practices helped spread the virus.

“I’d like to sugarcoat it and try to be diplomatic about it, but it failed,” Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, told USA Today. “People were getting infected on that ship. Something went awry.”

Here’s how it got so bad.



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