A key component to a healthy financial future is building your savings base; however, about 3 in 10 Americans have no money in savings. One of these easiest ways to approach this is to set up a savings account. Before you do this, it's important to comparison shop to identify the banks or credit unions where you can receive the most return on your investment. To aid you in this quest, here is a closer look at the best savings account rates available, as well as what to look for when considering providers.
Examining the Best Savings Account Interest Rates
If you want to maximize the money you save in a less risky investment vehicle, then a high-interest savings account will be one of the best ways to achieve this. You will need to make a minimum deposit to open the account. From there, you will usually have to maintain an average balance for your high-interest savings as outlined by the bank.
...about 3 in 10 Americans have no money in savings.
For instance, some might require you to keep an average daily balance of $10,000 while others might not set requirements. What makes high-interest savings accounts such a good draw is they typically offer the highest interest savings available. This means if you don't mind the occasional restriction and would like to maximize your return quickly then this is a great option to consider.
The Best High-Interest Savings Account
Since you want to find the best savings account interest rates available, it's best you select a few reputable financial institutions to compare their savings account interest rate offerings. One of the best ways to achieve this is to use our comparison feature between the top providers. This allows you to compare different banks based on saving account interest rates among other factors such as customer service provided and any fees the bank charges for the account. Moreover, by searching for the best savings account interest rate using this feature you'll expedite your research, matching you with the bank that offers the most competitive savings account rates in little time.
The Best Savings Account Interest Rates
What is a savings account online? It's simply a savings account where you make deposits electronically through the use of a mobile application or by mailing in checks. What makes these type of savings accounts appealing is that some financial institutions won't charge you an account fee or if they do, it will be minimal compared to traditional banks, equating to more online savings. To set up a savings account online, you'll want to first compare different online banks to find the ones that offer the best features such as a free online savings account. Once you find the saving account you want, you'll apply securely online, make the initial deposit and you are ready to go. Overall, if you are looking for a free savings account, online is going to be one of your best options because many won't charge you to manage your account and you won't have to jump through a bunch of hoops (direct deposit, maintaining a specified daily balance) as you would with traditional banks.
How to Choose the Best High Yield Savings Account
A high yield savings account is one that pays more (through a higher interest rate) than a regular savings account like one you would open at a traditional bank. In most regards, you are going to find the best high yield savings with online financial institutions though it would be unwise to not comparison shop beforehand. To illustrate, you could compare rates with your current bank or credit union with rates online banks offer. Moreover, you can use our comparison tool on savings account providers to see which ones are the most reputable and offer the most competitive rates. At the same time, it's vital that you examine the product offerings and any fees the bank might charge you for the account. For example, do you need to maintain a specified balance? And if you don't meet that requirement, how much is the monthly fee for the account? Once you compile your research it should be easy to determine the best banks that offer this feature, which can help you grow your savings account quicker.
How to Find the Best Saving Account Rates
Overall, finding the best savings accounts will depend on your personal preferences. First, it's important for you to establish short term and long term goals. To begin, say you want to save $700 in the next six months to pay off a credit card. Using this example, you are going to want to find the best savings account rates to help you achieve your goal. However, it's also important that you watch out for fees a bank might try to charge you. Many traditional banks will allow you to have a savings account, but if you don't keep their required daily balance average, you'll incur a monthly charge, which, over time will eat away at your savings. To prevent this from occurring, you can find the provider that has the best savings account rate, while also being mindful of any fees the bank might charge you for the account.
One of the best ways to avoid the fee altogether is to break away from traditional banks and instead find the best online savings account. While having this account will eliminate your accessibility to visit branches, if you do most of your banking online then it won't matter. Moreover, you will still have access to your funds through ATMs -where many online banks waive fees assessed. This means you receive the convenience of an online account while also earning the best savings rates.
Of course, if you want the best savings interest rates, then a high-yield option is going to be best for you. Again, it's important to be mindful of each bank's qualifications for the account before committing to one.
Savings Account Rate Calculator
When you are ready to build your savings and want to compare how each bank will aid you in this regard, you can use our savings calculator, as this can help you learn how much you'll earn with each account offering.