Highest yield savings vs. best savings

2007-03-08 10:33:40

( Financial )



A savings account often consists of money set aside for deposit in a bank or investment in a plan. It is further defined as liquid income after personal consumption expenses, or income leftover after purchase or spending of basic needs.

Savings accounts come in various forms. There are instant access, savings bonds, notice, internet and child savings among others. When choosing, ask yourself how you plan to manage your account, whether you require instant access or want to leave your money untouched for years. Then you have to decide when you want your interest paid or whether you want a fixed interest rate. There is the question of physically visiting a bank branch or the preference of instant online access. These questions are very important, because the best savings accounts are dependent upon your needs.

The best savings account
It is not enough to just pick the account which offers the highest yield savings interest rate. A highest yield savings account does not guarantee it is the best savings account. There are a couple of other features you have to consider when looking for the best savings deal.

Highest yield savings. These types of account offer the highest yield savings interest. When choosing a bank to open an account with, study the interest rates which add up to your account every month. Inquire about sample yields and interest rates from different banks and analyze which ones give more value for money.

Product features. If you want to check your account in the easiest possible way, make sure it is accessible through the internet and phone. This way, you can access your account information anytime. You can also look up different online banks and pick the best online savings account. Online accounts or phone banks are convenient and offer higher rates when compared with branch-based banks. Branch-based banks cannot afford to give the highest savings rate because of overhead expenditures incurred when running branches.

Account Rates. Most savings accounts charge several fees when you open an account. Skip banks which charge the highest fees and rates. Banks with the best savings accounts inform you of these rates, how much they cost, when you are required to pay them and they are reflected in your monthly statement of account.

Bonuses. Beware of banks who offer higher introductory rates -they usually revert to a much lower rate within months of opening an account.

Eventually, most banks change their interest rates, bonuses and product features from time to time to lure more customers. This may result in a less-than satisfactory deal from what you thought was the best savings account. If you don't want to keep moving your money around every time a better deal arises, you may want to consider an account which offers a guarantee. Interest rates may prove to be slightly lower than the highest yield savings accounts but you are assured they maintain an almost steady base rate.


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