There are hundreds of different banks that offer savings accounts, and millions of Americans have them. While savings accounts are so common, so are the banks that offer them with low annual interest rates. Honestly, nobody should have to settle for an interest rate that is below 1.00% because the amount of interest gained on even the highest sums of money is pitiful. Therefore, it is best for a person to obtain a high-yield savings account because they offer rates over 1.00% annually.
Looking for a high-yield savings account is simple enough because there are quite a few banks that offer these types of accounts. On the other hand, not every one of these banks is as good as the rest. There are certain factors a person has to take into account when looking for a high-yield savings account, such as the following:
* Most high-yield savings accounts are managed online, so the bank should offer an easy-to-use system online that is clear and concise.
* An individual should be able to withdraw the funds from their savings account to an external account whenever they so desire.
* The bank itself should be a financial institution that the general public can trust, which means the bank should be stable and not have any problems.
Plenty of other things should be taken into consideration when it comes to high-yield savings accounts, but they are fairly simple to understand. Of course, choosing a bank can be a little bit more difficult, but plenty of banks offer these accounts. ING Direct and American Express offer high-yield interest accounts with rates over 1.00%. There are a handful of others on the national scale and others that are more regional.
Without a doubt, high-yield savings accounts are a better choice than traditional savings accounts. Annual interest on $10,000 would be $10.00 at a rate of 0.1%. However, that same amount of money would yield $100 worth of interest at a rate of at least 1.00%. This math shouldn’t confuse anyone – the earnings potential with high-yields savings accounts is much greater than that of typical savings accounts with low interest rates.
When it comes to deciding upon the right bank to choose that offers high-yield savings accounts, a person needs to do plenty of research. Just because a bank offers the highest interest rate doesn’t mean that it is the best bank out there. Obviously, research is the key to finding the best high-yield savings accounts. The best banks with these types of accounts offer a good interest rate, easy to use services, great customer service, and flexibility for the account owner. Nobody should have too much trouble finding a bank with all of these qualities, but they have to be careful of the banks that do not.