Americans are known to be hard working people. Compared to many other nations, Americans work harder and take less vacation. Yet when it comes to managing our money, all too often, we don’t spend the time we should. More often than not, new clients come to us with substantial amounts of cash sitting in checking and savings accounts earning next to nothing.

A recent article in the Wall Street Journal (“Savings Accounts Beckon Investors with Better Rates”, June 3rd, 2009) outlined a number of options for achieving better returns for your cash. In many cases, the article said, savings accounts now beat out many money market funds. The reason is that many banks are using “teaser” rates on their savings accounts to attract new customers. In the past, this has been a common practice with bank CDs. Since the savings accounts are insured by the FDIC (up to $250,000 until 2013), the savings account option is safer than uninsured money market accounts (although money market accounts have a history of being quite safe).

Some bank savings accounts are paying up to 2.25%, with many money market funds paying just half that amount or less. If you’re sure you won’t need any cash for a year or more, one-year CDs can also be a good option for some of your excess cash (not your emergency fund).

Whatever you do, take the time to shop around for a good rate for your checking and savings cash. You work hard for your money; make your money work hard for you too!