Don't Stop Saving

The Federal Reserve has recently cut the federal interest rate twice in two weeks. If you have your savings in a high-interest online savings account, you might have gotten an email detailing your new, lower interest rate. The attraction to these high-interest savings accounts is in the name: high interest.

Many online savings rates are down to around 3-4%. That's still a great rate, but not as nice as 5+% has been for the past year. You should not stop saving because you are earning less interest than you were before. 3.5% is still 3% higher than your local brick and mortar bank will give you.

However, if you are looking for a better return, now is the time to invest your new money in the market. Stocks are down and you know the rule: Buy Low.

But don't stop putting money away in your emergency fund, HDTV fund, house fund, or whatever you are using an online savings account for. Any amount of time your money isn't in your savings account, it isn't earning interest, and you aren't making any money.