Savings Account

It was pointed out recently (by @BusinessFamous) that there might be a better place to put your money than a traditional savings account.

Bank of America’s Savings Account has a yield of 0.01%
For every $2,500 deposited, they’ll pay you $0.25/yr interest.

Bank of America’s stock pays shareholders about 2.77% in dividends.
For every $2,500 of BAC Stock you own, you’d receive $69.25/yr in dividends.

That’s a 277x greater return.
Bank of America treats their shareholders much better than their depositors.

What’s significant is that this strategy doesn’t involve speculation like traditional stock investing. We aren’t buying $BAC (Bank of America) and hoping the price goes up. $BAC has been paying quarterly dividends since 2011, and while it’s not guaranteed, they’ve got a great track record of paying, and increasing the amount they pay.

So whether the stock price goes up, or goes down; there’s a very good chance they’ll still payout the dividend. However, if the price goes down you would lose some of your initial investment (but you’d still have the dividend each quarter). And if the price goes up, win-win; because now you have the dividends and an increase on your initial principal.

Remember: Investments can lose value. Your principal is not guaranteed. So always weigh the risk/reward. Putting money in a savings account is by far the safest thing to do. So decide for yourself whether you’d rather have safety or a 277x greater return.