If you are thinking of opening a bank savings account that earns the highest interest rate, you will be considered as a savvy investor. You may want to save money for your home, family, education or any unexpected emergency, this kind of savings account will be very helpful for you in the long terms. You not only get to earn high interests but have the money safe and available in your bank account.

Standard big bank savings accounts don’t offer high interest rates on the savings account. You will get to earn better interest rates from online banking account, brick and mortar banks, credit unions and other institutions that are paying interest hovering around 5 percent and better and very important point to be kept in mind, most of them are free from any fee. Thus, these kinds of accounts offer a high annual yield than standard savings account.

One question that you may have in your mind is how these kinds of institutions are able to offer great rates? The online banks especially offer better interest rates from the brick and mortar banks because they don’t have any overhead on them. The savings is thus passed along to you in the form of high interest rates. Because of the stiff competition in the banking industry, traditional banks have entered the fray by developing online savings products of their own. This allows them to offer high yield savings accounts.

It is an ideal time for you to open high interest savings bank account in those institutions that offer higher interest rates. You will be able to find good number of institutions because the banking market is going through a lot of competition and they have to offer best deals to attract the investors. Go online and compare the interest rates with different institutions. You will know the rates offered, limitations and terms of services with a click of the mouse.

In order to stay in the market, most banks are offering a variety range of products and services. There is usually no minimum balance fee, easy online access, direct deposit, free on line banking that allows you to view your balance, transfer funds, convenient fee free, ATM transactions and checking account options. You also get the features of setting up external banking that allows you transfer funds from one account to another with different banks.

Be sure to understand the terms of services of the financial institution before opening an account with them. Some may have limitations or restrictions that may not cater to your needs. Due to the competitive market, there is no reason you should invest your money foolishly at lower interest rates or give your business just to any bank around. Always do your research thoroughly and make the best decisions before investing your money. You may find that it is prudent to move your money into a high interest rate savings account online or offline that yields better financial results.

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This entry was posted on Monday, March 10th, 2008 at 6:25 pm and is filed under Interest rate, Money and Banking, Personal Finance, Savings. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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