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In lieu of the recent financial concerns about the Gulf spill, turmoil in Europe and an impenetrable unemployment rate, many investors are in search of safe havens to stockpile cash reserves. And while inflation remains at a norm, high interest rate savings accounts continue to attract the consumer who does not have a penny to lose.
To deconstruct the high interest rate savings accounts, High Interest Savings compiled a fact sheet:
- High interest savings accounts with funds up to $250,000 are protected by the FDIC Federal Deposit Insurance Corporation.
- Although, many high interest rate online savings accounts promote a yield, many are promotional gimmicks, accompanying specific guidelines.
- Since each financial institution assesses interest on differing terms (week, month or year), always determine the metric for the promoted high interest rate savings accounts.
- Subsequent to subscribing funding a new high interest rate savings accounts, remember to review the following terms which can carry fines, and fees:
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- Withdrawal policies
- Number of monthly transactions
- Administrative fees
- Minimum balance requirements
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- In situations, where the accountholder maintains a checking account and high interest savings accounts, review if there are any check balancing guidelines that would negatively affect the high interest savings accounts’ growth. (Some brick and mortar banks have pesky conditions, like this).
Did you know… that if even account holders of high interest savings accounts, are NOT American citizens, their deposits up to $250,000 are insured by the FDIC.
- Compare how much yield the bank contributes to high interest rate savings accounts. (Many findings show that larger institutions offer a lower yield than smaller banks)
- Until 2013, all high interest savings accounts with balances up to $250,000 are covered by the FDIC’s standard insurance amount (per depositor – per institution)