High yield savings accounts, what are they and where do I go to find one? If you’ve been asking these questions yourself than I have the answers you’ve been looking for. For one thing, you’ll want to determine if you are willing to invest your money in an online account. If you are willing to do that, you will earn a much higher interest rate, in most cases, than you would with your local branch bank.
Bankrate.com is a great resource online. you can go to this site and research various online banks and compare interest rates. That makes finding the best rate very quick and easy to do. Don’t skip this step either, just a small difference in the rate of interest you will earn can make a big difference in the amount of money your money will earn for you over a period of time. A little bump in the interest rates can dramatically increase the overall money you will make.
Of course, there are other things you’ll want to look at when picking a bank. One thing to consider is whether or not the bank is FDIC insured. You may not have known that even online banks can be FDIC insured and if a bank you are looking at isn’t insured, keep looking. This is way too important to ignore, it offers you more security to your money.
Also, what is the minimum amount of money you will need to open the account? The higher the interest rate the higher the deposit amount will be in most cases. Check on the availability of customer service too. It’s always nice to have someone you can ask questions of should they arise and just because you are looking for high yield savings accounts online doesn’t mean you have to skimp on service.
You will have the option to open two different types of accounts: regular savings account or a CD. Each option has it’s pros and cons. For example, you will have much more liquidity with a regular savings account. For the most part you can get your money pretty much any time you want it. But you won’t earn as much in interest as you would if you committed to a longer term CD. It’s your choice, just be sure that if you choose to get a CD that you will be able to leave your money alone the whole term. If you want to get your money out early it will cost you … a lot.
It basically boils down to this: CD – higher interest but less liquidity. Savings – less interest but more liquid. Ultimately, only you can decide which option makes the most sense for you.
Spending a few minutes of time online can help you find a great savings vehicle. You don’t have to sacrifice, you can get high interest and security with a secure online account. With just a few clicks of the mouse you can find truly great high yield savings accounts.