How Can I Find a High-Interest Savings Account?
Joining a bank for the first time isn’t a decision that should be taken lightly in any case, but especially when it comes to saving your money. A slight difference in how much you stand to earn each year can add up to a big impact on your future over time – whether you’re putting funds aside for a major lifetime milestone like retirement or just for fun.
If you were looking for a short-term investment contract, it might be another story since you can simply collect your money and move along once the agreement concludes. But a savings account is a partnership that traditionally lasts several years and has no predetermined end date. You want to go with an arrangement that’s comfortable and trustworthy – with the best payout possible. All in all, it only makes sense to seek out a high-interest savings account when it comes time to foray into the world of earning money on your income. Here are a few strategies when it comes to doing just that:
Learn about average interest rates. You can either research the national average or simply pull up an assortment of bank rates, such as five or more, and then average them yourself (in this case, that would mean adding the numbers together and then dividing by five). Then you’ll have an idea of how you can define “high interest” before you get started.
Next you’ll want to do some research online to look into banks with interest rates that skew above the average. You may be content with simply choosing from among the banks with the higher rates from those you’ve found so far. But there are other financial factors you may wish to consider because they can offset how much you’re capable of earning in the long run. In addition to investigate the interest rates on the savings accounts themselves, you’ll want to look for low or zero start-up and maintenance fees along with limited penalty fees, such as overdrafts and frequent withdrawals.
You can also look for banks with a strong, positive reputation. This might mean they’re big enough that you’ve heard of them before, or you may be comfortable with a smaller bank that may give you more personalized attention. You can seek out current client testimonials or investigate the history of the bank to determine if their customer service and savings account options are measuring up and if they have a long history of consistent high quality. You don’t want to fall for a high interest rate that’s concealing a less-than-stellar background in terms of bank operations or user satisfaction.
Last but not least, you should choose a few top contenders and then arrange to speak with a representative from each bank. You may want to learn about the company’s history of raising rates and ask about any additional perks that come from membership. Let this individual convince you why their bank is your best bet – after all, if he or she can’t make a strong argument for their own employer, it’s probably the best sign that you can do better when choosing to open a high-interest savings account.
Author: TM Murphy is a professional writer who lives in NYC. She currently specializes in fashion, beauty, marketing and finance articles. TM Murphy has been writing full-time since 2006, when she graduated with a B.A. in English from Northeastern University.
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