Finding the Best High Yield Savings Account for Your Investments

financialtips4u By financialtips4u, 3rd Jan 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/3fpee_0q/
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The days when people saved money under their mattresses are gone. Savvy investors now know that accounts with high interest rates provide the best place to store your savings. Many people choose savings accounts in lieu of other investment vehicles because savings accounts are secure and carry little risk. When you deposit money into the account, you’ll earn interest on your balance.

Finding the Best High Yield Savings Account for Your Investments

The days when people saved money under their mattresses are gone. Savvy investors now know that accounts with high interest rates provide the best place to store your savings. Many people choose savings accounts in lieu of other investment vehicles because savings accounts are secure and carry little risk. When you deposit money into the account, you’ll earn interest on your balance. Funds remain in your account until you’re ready to withdraw them, so you’ll never have to worry about losing your savings to a crash in the stock market. If you’re ready to begin saving, follow these five steps to find the best high yield savings account for your investments.

1. Create an Investment Plan

As you prepare to open a new account, create an investment plan for your savings. It’s important to have an idea of how much money you’ll put into your account each week, as well as whether you prefer to make weekly or monthly deposits. Additionally, estimate how long you’ll need to save in order to reach the threshold of your savings goal. Once you know how you’ll use your savings account, you can begin looking for an account that offers favorable terms. For example, some accounts offer higher interest rates to customers who make more deposits throughout the year, while others reward investors who make large upfront deposits. Find an account that complements your unique financial situation.

2. Determine Your Savings Goals

Set a savings goal for your account. Whether you’re saving for your family’s summer vacation or home repairs, it’s important to know where your money will ultimately go. Your goals provide motivation and can inspire you to make regular deposits. You’ll also get a better idea of the benefits your account should have. If you’re saving for a long-term goal such as retirement or a college fund, you should concentrate on finding higher interest rates. Investors planning for a new car or a special trip might be more interested in an account with flexible withdrawal terms.

3. Look into Account Requirements

Before opening an account, you should always review the bank’s terms carefully. Some banks charge fees to customers who fail to make enough deposits or to those who make excessive withdrawals. Make sure that you’ll be able to comply with the account’s terms. Additionally, consider whether or not any of the restrictions detract from the overall value of the account. It’s possible to find an account that balances benefits and limitations, so don’t settle for an account that doesn’t suit your needs.

4. Find the Highest Interest Rates


Of course, you also need to look for high interest rates in order to find the best savings account. Online banks are a great source for high interest rates and low fees on savings accounts. For example, a Discover Bank high yield savings account can be a great option for someone looking for a good return on investment. A higher interest rate ultimately translates to more savings over time.

5. Compare Offers and Discounts

Finally, look for sales and discount offers on savings accounts before filling out any applications. Online banks frequently run promotions and offers that are intended to bring in new customers. When you maximize the potential value of your new savings account, you can earn more money and enjoy greater rewards along the way.

Photo Credit

Low Risk Savings Account:
krishnan / FreeDigitalPhotos.net

Author:

N. Farley is a freelance writer with a wide range of publications to her credit. She specializes in articles on finance, search engine optimization and Internet marketing. Nicole has a background in management, journalism and English literature and has been writing full-time since 2010.

Tags

Saving More Money, Savings, Savings Account

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author avatar financialtips4u
Personal finance tips and advice including how to manage your debt, credit and income assets to find financial freedom and security

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author avatar ittech
28th Jan 2012 (#)

I thank you. It is nice to see it.

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