Performing extensive online research is the best way to find a savings account that makes saving money an easy task. An interested individual can start by visiting websites that specialize in listing various online banks that offer competitive interest rates. These websites provide information that saves the searcher time. A visitor can view all of the interest rates on one convenient website.
Find a Website that Lists Savings Account Alternatives
Certificates of Deposits and high yield checking accounts may offer customers higher rates than savings accounts. A consumer interested in saving money can locate a website that mentions these types of alternatives. An online high yield checking account often pays higher interest rates if the person has a specific amount of deposited funds in the accounts. A Certificate of Deposit (CD) typically pays more interest if the depositor holds the funds for a few years and less interest if the depositor holds the funds for a few months. Monetary penalties exist for those who withdraw funds from Certificates of Deposits prior to their expiration dates.
Look for Savings Accounts that Calculate Interest Daily
It is important to choose a savings account or Certificate of Deposit that calculates interest on a daily basis. Some savings accounts only calculate interest monthly or quarterly, which makes saving money a more laborious task. The latter types of calculations can end up paying significantly less interest in the end. In order for interest to accumulate, frequent calculations are necessary. Interest that follows a daily calculation formula serves the saver best because interest accumulates with greater speed.
Consider Credit Unions Located in Specific Areas
Some credit unions offer substantially higher interest rates, but the trick is that the account holders need to live in specific cities in order to open up accounts. Additionally, credit unions may only offer their higher interest rates to employees of specific businesses. The amount of interest offered by a local credit union can amount to three times more interest than the average interest offered by national online banking institutions. Consequently, it is important to find out if local credit unions offer online opportunities to residents or employees.
Check out the History of a Financial Institution Prior to Opening an Account
Some online banks boast higher interest rates, but they may have filed for bankruptcy status recently. Furthermore, these banks may have histories of unfavorable customer service. For example, a bank may not honor withdrawal requests or may make serious errors when posting monetary deposits to the account.
Spend Time Performing Adequate Online Research
Online research can yield good feedback from prior and current bank customers as to whether a particular bank has a good reputation. This is especially true of banks or other financial institutions offering the highest interest rates. While some of these institutions may have sound reputations, others may have encountered difficulties in this respect. Higher interest rates can sometimes indicate warning signs that something is not quite right.
It is easy to find an online bank offering between a 0.65% interest rate and a 0.95 percent interest rate. A local bank may only offer a 0.46% interest. A credit union located in a specific locality, or associated with a certain organization, may offer as much as 1.51% interest. The best way to accomplish the fine art of saving money is to search for a bank or credit union that offers a good interest rate, has excellent customer service and possesses a financially stable history.