Introduction
Putting your money in a savings account is the best way to be prepared for any unforeseeable financial situation. Money in the savings account grows overtime reaping you great benefits at times of need. But you need to educate yourself on how to maximize your earnings in your savings interest account.
Step 1
By opening a savings account you will receive interest rate on the money deposited. For the most part, you won’t earn a lot of money over a short period of time because, the interest rates are not very high, but you can be sure that your investment is very safe and you can get your money quickly and easily. Any way, it’s better than putting all your hard earned money in a shoe box under your bed.
Step 2
Like any industry, the banking industry also has its own jargons and terms that common man would find difficult to understand.
Step 3
Take your time in understanding what these jargons mean, and understand the terms of each saving account before you make a decision. Read the fine print carefully and look for any hidden fees. Learn the terms like APR, which means annual percentage rate and so on.
Step 4
Find how frequently your interested rate is compounded. Look especially for banks offering semi-annual or quarterly interest rates, as they will yield higher returns for your money. Also look for high-yield interest rates offered by some banks. These banks will pay you more for keeping the money with them. But the catch is that, they will require a minimum balance and restrictions will be applied on how to access the bank account.
Step 5
Look at individual banks sites or call the bank to enquire about the current savings interest rates offered. Saving interest rates can change often so you need to be upto date.
Tip 6
Ally bank: With no monthly fees, no minimum balance and daily compounded interest rates, its quickly becoming one of the best banks for parking your money.
ING Direct: They are the online banking division of the ING Group and their account features are probably the best in the market, even though there savings rate are a little less competitive. (However their CD rates are very competitive)
WD Direct: They have the best high yield savings account. They have no monthly fees, 0% liability guarantee for unauthorized transactions and no minimum fees. The most striking feature of this bank is that they allow you to have unlimited linked external accounts.
Ever bank: Offers one of the highest interest rates of 0.76%. Very good deposit options not available elsewhere. Awarded “best of the Breed” by money magazine.
Closing thoughts
Always double check that the bank has FDIC Insurance and that they are legitimate. Talk with someone who had previous experience with the bank that you are interested in. When you are looking for high interest rate savings account, make sure that the bank doesn’t sneak a few hidden fees somewhere. Happy saving!
