High Interest Savings

High interest rate savings accounts and certificate of deposits are two financial vehicles, which offer different advantages. The high interest rate allows the accountholder the autonomy to make withdrawals from the investment from time to time. Meanwhile, certificate of deposits are designed to stock away, featuring inflexible investment withdrawal guidelines.

Unlike the fixed rate certificate of deposit, which takes longer to mature and does not  have the monthly withdrawal features of the high interest rate savings, some financial analysts recommend a liquid certificate of deposit, where certain funds are d

However, since many high interest rate savings accounts share some of the same features as the certificate of deposit, compare the following: 

• The APR
• The minimum balance requirements
• Transaction fees

For example, Discover card offers both a CD and high interest savings account; however, the APR is a  quarter percent higher on the certificate of insurance than the high interest savings account. Generally, CDs have a higher yield than high interest savings accounts.  

Be sure to compare the high interest rate savings at well known institutions, such as: 

• Discover
• AIG
• American Express
• Bank of America
• Capital One
• HSBC

Additionally, be sure to shop  around for the best high interest savings account. Most accounts include the following features and requirements: 

• Up to $250,000 per depositor, per account Insured by the Federal Deposit Insurance Corporation (FDIC)
• Has a direct deposit
• Allows up to six maximum withdrawals per statement cycle.
• Interest is compounded daily and accrued on a monthly basis.
• Returned deposits  due to insufficient funds carry a $5 surcharge 

Unlike the certificate of deposit (CD), which imposes a penalty for withdrawals prior to maturity of the CD that can ultimately lead to loss of the deposit,  a high interest savings account does not accompany any  of these stringent rules. Nevertheless, the high interest rate savings account is ideal for the consumer, who has the discipline to limit withdrawals.