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What Should You Know About The Best High Interest Savings Account?

Saving has become a necessity for today’s living. You can save money through many ways. Investing in mutual funds, bongs, high interest savings account can help you to a great extent during recession or when you are extremely in need.

• Savings account is the best way to save our money. Interest rates on savings accounts specifies about interest rate provided by bank for the fund deposited by us in bank.
• For obtaining interest on savings account, it is important that you pick the best source.
• Customers can also compare the interest rates of various banks including service fees, balance requirements, minimum fee requirement for opening an account etc through comparison websites. This will help you show some best banks out there in the market that offers good services.
• There are certain banks and credit unions, which offers various facilities in order to provide best high interest savings account to customers. It is essential that you do some research before you pick one.
• There are certain banks, which offer interest at high rates, but they also will charge inflated fees when there is a falls in your minimum balances. If your account balance is lower than their minimum requirements, then penalty is obvious.
• Almost all the banks charges maintenance fees on a monthly basis. Ensure how much the charges are. If they are too high, then pick another one.
• Downtime occurs because of charging maintenance fees. It sometimes costs more than the customer’s monthly earning interest. This becomes a major drawback. Therefore, check with this.
• It is necessary for customers to seek banks, which provide high interest on savings account.
• Saving account rate, liquidity, market rates, and requirement of minimum balance are important criteria, which has to be noted during opening up a savings account.
• Higher the investment, higher will be the interest rate. Gradually increase your investment once you begin to acquire adequate returns.
• Minimum balance is minimum money, this balance is required to keep your account alive and it is needed. Make sure you deposit it accordingly and never make it less.
• Liquidity has high advantages on savings accounts; it helps to move money very easily and also helps in gaining high interest rates.
• Bank accounts with high yield provide high interest rates on savings account when compared to other conventional banks.
• Many online bank accounts also provide high interest rate for the amount deposited on comparing brick and mortar banks. Prefer hunting for online bank offers for savings account. This will help you yield high.
• American Express Bank, Ally Bank and HSBC Bank are popular and important online savings providers, which gives higher interest rates.
• Following are the important factors needed to be followed on opening savings account.

Best high interest savings account

Fund transfer time should be noted and has to be compared among different banks. Fund transfer will not be a problem for best high interest savings account in online. Minimum balance requirement and savings account rate of banks are listed as follows:

APY refers to Annual percentage Yield.

1. EVER BANK offers 2.25% APY and Minimum Balance is of $1,500.
2. EBSB offers 1.55% in APY and Minimum Balance is $5,000.
3. NEW DOMINION DIRECT offers 1.50% and Minimum Balance is of $1,500.

Interest rates on savings accounts

Interest rate of savings accounts can be classified into two types: Static and variable. Static is the interest rate, which does not change. Once it is fixed in the beginning. It remains until you close the account whereas variable is the rate which changes with the market trends. It may rise as well as fall. Though fixed is more preferred, people these days are moving towards variable as well. In variable Interest rate that is offered in beginning will not be the same as after specified period, so it is necessary for the depositor to check both introductory, bonus and normal savings rate.

Limits on withdrawals:

v  Some banks sets up a restriction on amount on withdrawal, so select for competitive accounts where restriction or penalties are not much. Hunt for an account, that offers no interest rate while withdrawing cash.