Most people choose to put their money in savings account where it can earn interest. It would also be safer to place your money in savings accounts rather than just keeping your hard-earned money in your home under your mattress. What if your house gets robbed or your house burns down? If this happens, you will lose all the money you have worked so hard for.
Did you know that not all savings accounts actually earn interest? That is why you should not just open any savings account without doing your research. It is important that you do some comparison shopping in order to find the best high interest savings account.
Finding High Interest Savings Accounts
Where can you find high interest savings accounts? You can start your search online where you can find many online banks and financial institutions that offer the best savings account rates. Banks that operate online can afford to offer high interest rates because they have lower overhead costs compared to brick and mortar financial institutions.
Applying for a savings account online is even faster and more convenient as you do not have to leave the comfort of your home. There are even websites that allow you to compare various offers from different online banks. Just be careful when looking for internet savings accounts considering the number of scams on the internet.
Opening Your Savings Account
When looking for the best instant access savings accounts, you may also want to try checking with your banks first. They may offer the best rates for you especially if you have established a good credit history with them. Compare the rates they offer to the interest rates offered by online banks as well as the local banks. Keep in mind that the interest rates on savings accounts may vary depending on the bank. For this reason, you would need to compare various interest rates first before you decide to open your savings account.
But aside from savings accounts interest rates, there are also other factors that you need to consider when looking for the most suitable savings account for you. You also have to check the required minimum balance and make sure that you can afford to maintain that balance. There are some banks that charge fees if ever the remaining balance in your savings account falls below the required minimum balance. You also have to make sure that you can afford to lock your funds for a certain period of time as there are also some banks that charge withdrawal fees if ever you would need to access your account in case of emergencies. It may be better if you look for a savings account that would allow you to withdraw funds from your account whenever you need to without any additional fees.
Before you open a savings account, it would also be better if you pay off your debts first especially those debts with high interest rates such as credit cards and other unsecured debts. The interests you pay on these debts may be higher compared to the interests you are earning on your savings account.