Savings accounts are the cheapest way to save money. They’reThey’re also the safest since they’re insured by the FDIC up to $250,000 per depositor. And though savings accounts aren’t as exciting as other investment opportunities (like investing in stocks), they can be lucrative if you find a high-interest savings account. That’s why they’ve put together this guide on how to find the highest yield savings account that fits all your needs.
Compare interest rates
To find the highest-yielding savings account, you must compare interest rates across different banks. This can be done by searching on your browser or by visiting a website that allows you to compare interest rates easily. Some of these sites include Bankrate and SavingsAccounts.com.
You should also examine the accounts within a bank or credit union before deciding which one will get you the most bang for your buck. You may have to dig because not all banks offer high-yield savings accounts through their main websites (some require logging in with your branch number). However, this is well worth it if it means earning more money in return for depositing your cash into one of these accounts.
Compare fees and minimum balance requirements
When it comes to high-yield savings accounts, you want to make sure that you are getting the most bang for your buck. It is important that you don’t lose money by signing up for an account with too many fees or minimum balance requirements.
When comparing accounts, look at the fees and minimum balance requirements first. That way, you can avoid signing up for an account that charges too much in fees or has a high minimum requirement.
Consider the bank’s reputation
It would help if you also considered the bank’s reputation. For example, look for an FDIC-insured bank that has been in business for a long time and has a good reputation for customer service and security. SoFi experts say, “More than just a savings account that secures your money.”
You want to go with an FDIC-insured account for two reasons:
- If the bank goes out of business, your money will be protected by the FDIC up to $250,000 per person per institution.
- Many online banks do not offer CDs or savings accounts with high yields because they are new and want to attract customers fast by offering low rates on their deposits.
- An established bank can afford to pay higher interest rates on deposits because they don’t need as much money in order to operate their operations or fund new loans or investments as much as an online bank does.
Check the fine print
You should check the account details to see if there are any withdrawal restrictions. For example, if you have a savings account with a high-interest rate, but the bank charges a monthly fee and has penalties for early withdrawals, then your savings aren’t saving anything. This is why it’s important to read through the terms and conditions of your savings account before opening one to ensure that it will meet your needs and provide an opportunity for growth without incurring additional fees or penalties.
Saving money is a great way to build wealth and protect yourself against financial emergencies. The best savings account for you depends on your personal needs, but these tips will help you find the right fit.