Reputation. As Americans learned from the financial crisis of 2008 through March of 2009, banks are not invincible.  As a result, checking a banks financial stability is a vital step to stockpiling the nest egg into a high interest rate savings account.  Aside from checking that a prospective bank is insured by the Federal Department of Insuramce Commerce (FDIC), determine if the bank  is on the “troubled bank” list. 

Security. Many banks offer high interest saving accounts with paperless or online banking.  Although many financial institutions tout the use of sophisticated security systems, be sure to determine if the bank has the appropriate measures. safeguarding your personal account information. Also, research how the bank administers lost passwords.  Some financial institutions send temporary pass codes via text messages or by phone.

Customer Service. How a bank or financial institution manages customer service conveys  a lot about the company. Banks subjecting their customers to a loop of voicemail and few options to communicate with a live human are generally an indication of an institution with inept customer responsiveness. Although many companies outsource their customer service overseas, it seems like a security glitch waiting for a major snafu.

Terms and Limitations. Does the bank require a minimum balance requirement? Are there any monthly fees? Review the small print. Certain institutions such as WTDirect Savings modify the APY within 60 days – if  the balance  falls under $10,000.  Although the APY changes for balances under the minimum requirements, high interest savings rates with these types of terms generally offer a higher yield than similar financial products.