In the current economy, people try to do all they can with their finances to get the most out of each paycheck. While traditional banks and savings accounts can get you a fair enough interest rate, more and more people are turning towards high interest savings when it comes to monetary planning. Many banks today advertize a promise of ‘highest interest savings’ for their accounts. What you need to understand is that these are regular savings accounts with a few privileges. One of the main advantages is the higher Annual Percentage Yield or the APY. However, you will have to fulfill certain requirements to qualify.
What You Need For A High Yield Savings Account
We all want to save money and put it together in some sound financial plan in order to give our children and family a better life. There are certain types of clients who actually qualify for a high savings account. In order to get yourself on the list, you should make a significantly large deposit in the bank initially. You will also need to maintain a pretty high balance on this account. Keep your transactions in this particular account to a minimum. Try and get into other banking relationships with the place. A high rate savings account is generally given to loyal patrons and to those whom the bank values.
Getting yourself an Internet bank account is also a good idea. In fact, the deposits you put down can be lower too. However, the hassle is that all the back end management is something you will have to do yourself. This will mean working on linking all your accounts and taking care of transfers and the like. The flip side is that you can manage your finances all through the day from the comfort of your home. The fees for such high savings accounts are quite minimal too.
Be Smart About High Interest Savings Accounts
Points to remember when applying for a savings account that offers high interest. As far as the kind of savings account you choose, there are basically two kinds of accounts. There are two types of savings accounts – regular and deposit. If you are opting for a deposit account, then you will have to put in a specified amount of money each month at a fixed time. The only thing with this type of account is that if for any reason the balance in your account goes below the stipulate deposit each month, you will lose the interest amount.
The other kind of account is the regular savings account, which does not come with any of these hassles. You can deposit as much as you like, when you feel like. However, the interest rate you will get here is lower than a deposit account would get you.
Another factor you have to take into consideration is how much of access you have to the interest that is coming in on your account. The interest you get will depend on the account you have and your access to it. You could opt for a flexible savings account or one where you have access that is limited to your needs.
In a flexible account, you can deposit as well as withdraw money as and when you feel the need and this can be done without any additional charges. You will also have to make enquiries with the bank on the way they pay interest. Some of them do it on an annual basis. Others give payouts on a monthly basis. You will have to look for the option that best suits you.
Getting The Highest Interest Savings
When you set out to get the highest savings rate possible, you need to make sure that you head to the right place. One of the best places to make a comparison is at Bank Rate. This is a website that gives you a comparison of the country’s banks, as well as credit unions and all the online banks that are out there. This comes with convenient calculators and will allow you to calculate the interest you get from these accounts. You can even keep track of your accounts, the deposits and the interest accumulated.
Another good source for comparison on high yield savings accounts is called the Consumer Search. It provides a lot of well-compiled up to date information on the different kinds of interest-carrying savings accounts and even allows visitors to make a comparison of APY percentages.
You can also go down to your local banks and source the information yourself. It would be a good idea to do things this way, as it will help protect your financial details. No matter whether you do things in person, on the phone or online, you have to make sure that you are getting your work done through an FDIC insured monetary organization. In fact, the Congress created The Federal Deposit Insurance Corporation for this very reason and to protect the interests of consumers should a bank go under. All depositor-based funds have protection up to $250,000 for every insured account and this covers checking accounts, savings as well as those in the money market and also certificates of deposit.
If you are looking for some good high yield savings services then you should look into the offerings of SmartyPig. This is a bank in partnership with West Bank. This is an online savings option that allows consumers to create individual accounts for a number of purchases. They have even been featured in Forbes and American Banking News magazines of late. What came out in these publications is that SmartyPig is one of those organizations that allow individuals within a family to make deposits in to the accounts of their family circle to help them to meet their financial obligations. There are a number of such high interest savings schemes that you can check out on SmartyPig.com.