High Interest Savings Account Tips

2019/02/25

There are lots of benefits of opening a high-yield savings account. They do not just allow you to earn more on your balance but they also provide more flexibility as compared to other interest-earning investment when it comes to withdrawing some of your cash before the term is complete.

Following is a brief rundown on some high interest saving account tips that you will find very useful in this regard.

Certificates Of Deposits (CDS)

When it comes to earning high interest through saving accounts, a good strategy is to invest in certificates of Deposits that are commonly referred to as CDs. Investing for longer terms in CDs can help your money grow at a much faster pace. In general, you can get the best rates if you go for the 60-month term. Locking such high rates for a long term can give a boost to your savings.

High Yield Money Market Accounts

If you can afford to make a larger amount of deposit in the beginning, you can consider investing in high-yield money market accounts. The best thing about these accounts is that they offer better rates as compared to the majority of other options for savings. But here, it is very important for you to keep in mind that you may be charged a penalty fee when your deposit drops below the required minimum because of excessive cash withdrawal before the term completes.

Traditional Money Market Accounts

There are lots of banks in the United States of America offer conventional money market accounts that also allow you to earn high interest on your deposit balances. The features and terms of these accounts vary significantly from one bank to another. In general, you can find some of the best programs with your local credit unions, Discover Bank, US Bank and Bank of America. The best thing about these high interest saving accounts is that they neither charge you any penalty for withdrawing cash from your account when needed nor do they require you to maintain a high amount of minimum deposit.

Traditional Savings Accounts

Last, but not the least, you can obviously also contact your local banks and inquire about the features they are offering with their traditional saving accounts. Though the interest rate on these accounts are usually much lower as compared to other options that have been mentioned above, you can still do your research and try to find a bank that offers the best rate. The best thing about a regular saving bank account is that it provides you more flexibility and even the rates offered by some banks are quite attractive.

No matter which type of high interest saving accounts you are opening, it is always wise to set up an automatic contribution plan to make sure you save a certain amount of money every month without fail. It is quite unfortunate that not many people take advantage of this option. Those who do find it very helpful, as it allows them to keep themselves financially more disciplined than others. They save regularly without much trouble and when financial emergencies hit them, they don’t start looking for the risky quick payday loans.

Photo Credit: Aboutsavingsaccounts.com

featured personal-finance

MORE ABOUT High Interest Savings Account Tips

Historia amp