High interest savings account

A savings account is a safe way to invest your money and make it grow. The price for safety is the low interest the banks offer. Instead of using a traditional savings account you can open an online savings account that offer higher interest rates than traditional banks.

Online savings account - FDIC insurance

When you open a savings account, you are buying something from the bank. What the bank is selling you is a promise - you need to make sure that the bank will keep its promise.

For the past few years we've found out that banks might colapse, so if you decides to use an online savings account, check if it has FDIC Insurance.
Knowing your savings account have an FDIC insurance will help you sleep better at night. You'll know that if the bank is broke the U.S. government will be there for you.

Don't be shy. Ask the bank for a higher interest rate.

Usually when it comes to banks, we tend to accept what they are saying as a rule from above. Don't do that. The banks that offer online savings account need you more than you need them - they are ready to pay a lot for a new client. When it comes to a low interest yield investment like savings accounts, every small number is making a different. So don't hesitate to ask for more, in the worst case they will say no. And don't go for the first offer, check a few different online savings account and wait until you are you are certain that you are getting the best interest for your money.

High interest savings account - Withdrawal limit, fees & balance

High interest savings account have limits. So before you select a savings account, Find out when you can withdrawal the money and what's the monthly fees. Many online savings account have no monthly fees and they require no minimum balance.

High interest savings account - Understanding interest rate

To understand how much money you'll make, check the APY (Annual percentage yield) the bank offers. APY is a tool for evaluating how much a deposit earns you, you can read about it here.

Reasons not to use online bank accounts

Deposits to your bank account can be slow, taking money out can also take time and you may run into bad customer service. However, the high interest you earn might worth it. Just remember to plan a head and don't deposits money you might want to use soon.

We hope this article will help you to select a high interest savings account.