High Interest Savings

Opening a savings account is a great way to get on track and take control of your personal finances.  It is an important way to safely save money and have cash available when you need it.  However with a traditional savings account the amount of interest earned is usually minimal.  When considering the rate of inflation as well as some other factors, saving money in a traditional savings account can actually be losing you money over time.  A high-interest savings account is an alternative to the traditional savings account that can help with the low interest earnings.

You don’t have to settle for a low interest rate savings account.  Most high-interest savings accounts are protected by the FDIC for up to $250,000 and they pay a much higher rate of interest which will help you to save more money faster.  These high interest accounts are available at both online as well as brick and mortar banks.

When inquiring about opening a high interest savings account here are a few things to consider:

Many high interest savings accounts have a minimum balance requirement so you will need to learn how much money you will need to deposit in order to open the account.

Shop around for the best interest rate you can find.  Some banks will offer a higher introductory rate for a specified amount of time.  Compare that with the current rate that they are offering other customers before jumping at the high initial rate.

There are several ways for interest to be compounded, daily, weekly, monthly, annually.  Be sure you know how the bank will compound your interest so you can calculate your savings.

Ask if there are any fees associated with the account.  Some accounts have application or set up fees.  Others might charge a penalty fee for too many transactions during a certain time frame, for example only 2 withdrawals allowed per month.  Some accounts may charge a fee if the balance goes below a certain amount.

Find out if the bank requires you to have any other accounts with them.  Do you need to open a checking account or also have a traditional savings account with the bank?

How can you withdrawal funds from the account, are there online methods, an ATM, a checkbook?

A high-interest savings account is a safe way for you to save money and earn a little more interest than with a traditional savings account.  It will provide you with the flexibility you need to get at your money penalty free and beat the rate of inflation.