High-Interest Savings Account: A Wise Investment

2007-03-08 10:33:40

( Financial )



Opening a savings account is the safest and most conservative way to save money. On the other hand, getting a regular savings account gives you less yields compared to investing your money to bonds or mutual funds. With a regular account, the worth of the money you saved will be much less than when you started saving. This is where high interest savings accounts come into play.

When shopping for high interest savings accounts, look around and study your prospects. Different establishments offer different interest rates. It would also be advisable to stick with established financial institutions. Do not jump on the first offer you get or the one which offered you the best savings account interest rates. Do the math on the interest rates from different establishments and study the features of the accounts. Make sure that the interest that you will earn is way higher than the dues that the bank may charge you for keeping an account with them. Try to speak with a banker and get as much information as you can get. The more you know, the easier it is to weigh your options.

After choosing fitting high interest savings accounts, observe the flow of your money within the first six months. This should be enough time for you to decide if the account is for keeps. Many institutions increase an account’s interest yields depending on the size of the savings and the length of time that the savings have been maintained. If the account satisfies you, strive to save more for as long as possible.

To maximize your high interest savings accounts, avoid withdrawing money below the minimum balance. Try to keep your balance far from the minimum debitable balance. In the end, you will appreciate having a sturdier umbrella for the rainy days, and for as long as you need it.


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