The Best Savings Account Is… A Credit Card?

2020 is looking like a rough year for investors.

Stocks are volatile due to coronavirus concerns and fears about the global supply chain. Plus, federal rate cuts are reducing the yields on both savings accounts and certificates of deposit. With all this uncertainty, you may be wondering how to safely grow your money.

Here’s an unusual but effective suggestion: credit cards.

If you’re spending money, you might as well do it through a credit card. This way you reap rewards like cash back or free flights. Best of all, there’s a good chance your returns outpace most savings accounts and even some dividend stocks.

Here are just a few examples:

• Discover It Cash Back — This card pays you 1% cash back on all your purchases, and has rotating cash back categories (such as restaurants or online shopping) which yield a 5% return.
• Amazon Prime Rewards Card — You earn 5% cash back when shopping on Amazon or at Whole Foods. Also nets you a $100 Amazon gift card just for signing up.
• American Express Blue Cash Everyday® Card — Yields between 2–3% cash back on every purchase. Also rewards you with a $200 statement credit after you spend $1,000 in your first three months.