Savings accounts are great for people to get to save money over a long period of time. However, there is a new type of savings account that is on the rise which is the high-interest savings accounts. These accounts are offered mainly by online banks and institutions that save money and are able to offer this because of the fact that they don’t have any real brick and mortar buildings anywhere.
These new savings accounts depending on the bank have minimum balance requirements to get the benefits from the account but many of them don’t and that is something that the customer has to look into when they try to find a high-interest savings account.
Benefits of Savings Accounts
The benefit to the customer to have one of the accounts is that they are actually going to be earning interest and still have complete access to their money so it is a perk without having to give anything up, which is something that they just would not be able to get at a normal bank right now anywhere in the world. But to make sure that their money is in good hands there are a few things that the customer needs to watch out for.
Just like anything else online you have to be careful to make sure that the company is legit and that the money is secured. To make sure that the company is secure then you want to make sure that the money is FDIC insured and what the limits on the account are for that. It is never a good idea to go over the limits of the insurance and at that point, you would need a second account.
But after looking at the insurance of the company you should look at two things: one being the reviews of customers and the second being the conditions to having the interest rate given to the account. Many companies still want you to either have direct deposit set up, a minimum balance, or a minimum number of deposits in order to keep the interest rate on the account.
Paying attention to these not only help you to find the best account for you but to make sure that when you get the account you are getting the interest rate you wanted when you signed up for the account. High interest savings account options seem endless but with looking at ones that don’t have crazy requirements but still competitive rates you will be able to narrow down the list quite rapidly.
Overall, a high interest savings account gives you rewards for having that money with a bank. After all, they are borrowing your money to make money so why shouldn’t they pay you a small cut of that for having it in the bank?
It is also vastly important to have constant access to that money otherwise you are entering a completely different type of account and not having your money when you need it can put you in a lot of trouble over time because savings accounts are used for emergencies, for Christmas, and so many other things that come up throughout the year that a CD just can’t be available for like your savings account could.
A lot of the companies do have it where you can link it to your main bank account and then set up deposits on a regular basis so you don’t even have to think about it making it some nice options.