Open High Yield Savings Account

Best High Yield Savings Accounts

Do you have a regular savings account? Does it feel like it the interest that you earn on your savings is insignificant? Have you seen advertisements with online banks like ING Direct that offer higher rate interest savings accounts? Have you seen ads from HSBC Bank, Capital One Bank and other banks with high yield savings account online? Have you ever thought about opening a high yield money market account or a high yield cd account? Did you know that American Express and Discover both offer high yield savings online?

Besides the convenience of an online banking account, high yield savings accounts allow you the maximize the your earnings. Whereas a simple savings account will earn you the most basic return on your savings, a high yield savings account will allow you to earn substantially more money in interest. As such, it is in  your best interest to open a high yield savings account.

OpenHighYieldSavingsAccount.com helps you search for the best high yield savings accounts. Start earning more interest with the best high return savings account.

Search for High Yield Savings Accounts

In this day and age just about every bank offering some type of interest rate on their savings account, no matter how, calls it a high yield savings account. This is more of a gimmick than anything else. Since the interest rates today are generally lower than they were a few years ago, banks are able to get away with calling an interest rate of less than ½ of a percent high yield savings. If you use that as a template, you will find many banks that offer interest rates of more than 1% on your savings account. In some cases, with intense research, you might be able to find a bank or credit union offering interest rates above 2%.  

Under extremely rare circumstances, it may be possible to open a high interest savings account that can pay upwards of 3% in interest. However, the higher the interest rate that is paid on a savings account by the particular financial institution, the higher the risks involved. A bank or credit union that is newer and having less of a name or reputation may be tempted to offer relatively higher interest rates on their savings account in comparison to a more well-known and established bank or credit union. This extra risk that is incurred may not be all that bad.

When opening a savings account with any organization, whether it is a bank or a credit union, the most important and foremost thing that you should do is make sure that the financial institution is insured. If it is a bank it will have FDIC insurance and if it is a credit union, it will have NCUSIF insurance. Both types of institutions provide deposit coverage of up to $250,000. So, as long as the bank or credit union is insured you have nothing to worry about and you will be able to get back your money up to the deposit insurance amount, should that bank or credit union go under.  

So, as long as your bank or credit union has insurance coverage, you are free to choose the bank that offers you the best interest rates on your deposits. This does not only apply to savings accounts, but to other savings vehicles offered by the financial institution. For instance, CD accounts are known for their ability to pay higher interest rates. Money market accounts also tend to offer higher interest rates on your deposits that you would receive from a regular savings account. Online savings accounts are also known for their ability to offer you a higher return on your savings accounts.  

Much of the reason of higher rates o return on your money lies in the tougher restrictions imposed on these types of accounts. High yield CD accounts are high yield because you typically have to lock away your money for a fixed amount of time. IF you pull your money out before the CD matures, then you will be slapped with a early withdrawal penalty, which is usually quite sizeable. There are other types of CD accounts without this early withdrawal penalty, but you may have to trade off some interest in return for the no penalty feature. Money market accounts also have restrictions in the number of transactions that you are allowed to make per month as well as higher deposit amounts, as well as higher monthly maintenance balance requirements. 

Online savings accounts are extremely competitive in the rates that they are able to offer. As a matter of fact, some of the highest returns on your savings that are currently available are probably going to be through an online bank or some type of internet bank feature. Since these internet banks as the name implies do not have to deal with much of the overhead as regular brick and mortar banks, they are able to offer you greater features, so as free ATM usage around the world, for some internet banks, and more. The trade off is that all of your interactions will be via the phone or internet. If face to face service is important to you, then this may not be the best option. However, in current society, where most people are doing everything online, a lot of people will not have a problem with this.  

There are many different ways to open a high yield savings account. You will simply have to figure out which method is the best for you. Do your research. Remember that there is a price to pay for every decision. Higher yield on your money is going to mean tighter restrictions or a few inconveniences. Choose the one that works best for you and your lifestyle.