Saving money can be difficult while also paying for college. There are multiple options that can maximize the return on savings. (Courtesy of Pexels)

Saving is something that comes up in the average daily conversation. The idea of being prudent about money dates back long into my memory, as it probably does in yours. I remember the first time I got a piggy bank, but almost more vivid in my memory was when I got to smash my first piggy bank. I had saved up enough money for something and counted what, in hindsight, was a few notes of money. What I didn’t realize as a 7-year-old wannabe accountant was that the value of the money I had saved up devalued every day it sat in my piggy bank. And now you’re probably thinking, who in college still uses piggy banks? No one I know of, at least. But I wouldn’t write it off so quickly. I like to think of traditional savings accounts as Piggy Banks. They offer almost no interest comparatively, which means you are no different from 7-year-old me accumulating devalued money in the long run.

Now you are probably thinking, is she telling us not to save? Absolutely not, I am telling you to save the right way. How, might you ask? Well, one option is using High Yield Savings Accounts (HYSA). These are similar to your traditional Savings Accounts and have the same risk but offer you more return. Across the U.S., the average interest rate offered by financial institutions such as banks for traditional savings accounts is 0.42%. Now, seeing as that is the rate compounded yearly, you earn about 0.0035% in interest monthly. In my previous traditional savings account, it showed up as $0.01 (a literal cent). That was determined by how much money I put aside-it could have been higher or lower-but I was basically earning a cent every month.

Now imagine how helpful a cent every month is in this economy; not very helpful should be your response. HYSA offer you a different alternative. You can earn interest rates as high as 5.30%, depending on which account you open. I suggest using one of these three –

1. Marcus by Goldman Sachs currently offers 4.30 % and the option of 5.30 % for three months if you refer or are referred by someone, and you can get up to five referrals a year. They also allow same-day transfers, and your money is not tied up.

2. Ally currently offers 4.25%, and they allow you to use savings buckets to allocate money to your savings goals. They also have overdraft prevention on the account; the only issue is that transfers take three business days.

3. Capital One 360 Performance Savings offers 4.30 %. They also allow you to open multiple savings buckets toward your financial goals.

You can go with any other options; ensure they are FDI-insured and have perks that interest you. I’ll end by saying that the rates offered by the High Yield Savings Accounts are yearly rates and are to ensure that the money you are saving is not devalued by inflation. Every month, expect a return of whatever rate is offered (APY) divided by 12 as the interest rate that will apply to the money saved monthly. Save the right way, not the piggy bank way.