How to save money? Here are some views from Richard Barrington, the primary spokesman and personal finance expert for MoneyRates.com, which examines rates on bank accounts. A freelance writer and novelist, Barrington spent more than 20 years as an investment industry executive. Here’s what he had to say:

Yes, the recession is dragging on, the stock market is sputtering again, and interest rates are low. It’s an era of diminished expectations, one in which we must return to the basics like saving more money — which is about as fun as being told to eat your vegetables.

Feeding your savings account can help you build a little more financial muscle than you might think.

Let’s talk about those low interest rates on your accounts. A 2 percent interest rate with 1 percent deflation these days is worth as much as a 6 or 7 percent interest rate was under normal inflation conditions. You wouldn’t say no to 6 or 7 percent, would you? Because most of us have never seen deflation before, we have to readjust our thinking. Do the math and you’ll see it’s true: 2 percent is the new 6 percent.

Also, because the limit on FDIC deposit insurance has been raised to $250,000 through the end of 2013, it gives you more opportunity for pooling your deposits with one bank. Why is this important? Because banks often offer fee waivers and/or higher interest rates to large depositors. So, as you accumulate money, make sure you use that additional financial muscle to get better deposit terms. Read the rest of this entry »