What You Should Know About A High Yield Savings Account
When you ask yourself what banks have high interest savings accounts, the answer you get may be too good to be true because of the fine print. Sometimes the criteria you have to meet to make a high yield savings account worth it, is not worth it. Some of the limitations on a high interest bank account may defeat your purpose for opening the account so research carefully.
The Purpose Of A Savings Accounts
Most people open a savings account so as to have money available which can be accessed on quick notice. For example, many individuals use savings accounts for their emergency account. The positive is the quick availability. The negative is that sometimes you need to meet the minimum balance requirement for your savings account to be a high yield savings account plus the fees may eat away at any interest you do earn. Also read the fine print on the length of time you need for the account to stay opened before fees are charged.
Highest Yield Online Savings Accounts
Some of the highest interest rates paid on savings accounts can be found at online banks. These banks have lower expenses and are able to pass that savings onto their clients with higher rates and usually lower fees. High yield online savings accounts need to be researched with the same scrutiny as other savings accounts; namely, their minimum balance requirements, maybe their fees and any time requirements.
The Purpose of Checking Accounts
A checking account is a transactional account, the transaction being your ability to make withdrawals by writing checks. Most individuals use their checking accounts for bill paying. Unlike most savings accounts, checking accounts allow you to make numerous withdrawals. Checking accounts that pay interest are available in the market place but the interest rates are usually lower than savings accounts.
Your Money, Your Purpose
If you are looking for the highest interest rates, you may consider an online bank savings account. If you are looking for an account just to pay your bills regardless of the interest rates, open a checking account.