High Interest Savings

Archive for February, 2010

As the American economy recuperates, many consumers are in search of secure investment tool to stockpile their savings.  Since the wake of the financial meltdown, interest rates have been quite low. But, as the economy rebounds, interest rates will up making the high interest savings account a viable financial option. 

Consumers, who are shopping for a high interest savings accounts, have a pool of financial resources. From the brick and mortar bank to online high interest savings accounts, there are a slew of savings – investment options. Nevertheless, just as all credit cards do not offer the same benefits, the same is true of high yield savings accounts.

High interest savings, reviewed sevaral popular online accounts. When compared with brick an mortar banks, there were significant discrepancies with the two financial tools;

• Monthly Fees
• Minimum balances
• Promotional rates
• Daily Interest compounding

Transparency. In an effort to entice new customers, many banks offer high interest savings accounts, which are simply promotional . Be sure to review the APY terms of any high interest savings account that you’re considering. For instance, interest daily. Many others compound monthly, quarterly, or annually.

Certain high yield accounts charge a monthly fee; particularly in cases where the deposit is not transferred automatically from the employer.

Depending on the terms of the high interest savings account, instituted by the bank, many have a minimum balance requirement.

All banks have a six-transaction minimum. Since the federal government has set the limit, checks written to third parties, withdrawals and other financial transactions are limited.

Fortunately,  online and brick and mortar financial institutions, do not charge consumers for making deposits.

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It used to be that name brand banks and financial institutions like Goldman Sachs, Lehman Brothers, Merrill Lynch were invincible, representing stability and credibility. Since the financial collapse of 2008-2009, consumers have learned to look beyond name recognition. The same rule applies to selecting an online banking- high interest savings account. Consumer driven high interest savings accounts are comprised of the following features:

• Reliability
• Online security
• Good customer service
• The highest interest rates

Is the bank reliable? If you’re shopping around for a high savings account to save and grow your hard earned cash, make sure that the financial institutions is not only financially secure. Investigate whether the bank is on the federal government’s “most troubled bank” list. 

Does the bank provide good customer support? Finding a viable online banking institution rusting the well being of the high interest savings account includes the ability to rely on professional customer service. Given today’s technological independence, certain financial institutions consider voicemail to be the end all be all to quelling consumers concerns. On the contrary, opt for institutions providing expert and reliable customer service.

Does the high interest savings account have the appropriate online safeguards?  Major security breaches have been a growing concern. Since the United States government has been hacked, financial institutions are just as vulnerable. Information security experts contend that individuals who do paperless banking are less prone to identity theft and fraud. Prior to finalizing the high interest savings account, be sure to investigate the online bank’s security statements and provisions. 

Will the high interest savings account pay the dividends it touts? Some banks have a solid history of  offering a high interest rate and overall liquidity. Compare four to five different high interest savings accounts for the highest yield.

 

Does the financial institution conduct transactions on a virtual capacity?  

Finally, compare brick and mortar branches (i.e. ING and HSBC) fees and service advantages to online high interest savings account services.

 

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