High Yield Online Savings Account
Bank Online by splinder · Leave a Comment
I’m sure you’ve heard of them, but what do you know about any product referred to as a high yield online savings account? It may sound like it’s over your head, but I assure you it is not. Online banks around the world are competing for your business and you’re your account and a high yield online savings account is one you should definitely check out.
First of all, you should understand what yield means. Yield is your annual rate of return on an investment or savings account. It is written as a percentage. In this article I’m talking about high yield online savings accounts which have specific features. Most are based on amounts of $10,000 or higher, most have a very short-term guarantee period higher interest paid (3-6 months), and many have fees associated with them.
Don’t just let the interest rate offered be the deciding factor in your decision to deposit with an online company. Make sure you check them out. Learn how long they have been in business. Check the FDIC website to make sure they are a legitimate bank and you are insured for the funds you deposit. If they require you to have a checking account package to get the higher rate on your savings, what is the minimum balance requirement. If they charge fees for the account, make sure the rate you are getting offsets that fee and you are really coming out ahead.
As recently as 12 months ago you could get a high yield online savings account for a rate up to 5.00% from many companies. We have all seen the crash that happened since then. There is a great site for you to check bank rates . I saw rates there for as high 1.63% with no minimum balance requirement. Your bank most likely can’t come close to that in this environment for a deposit account.
With savings account interest rates so low, it is more important than ever to find a good savings rate. Higher savings rates lead to higher account balances which can lead to fee waivers on related accounts and many other benefits. It might take a little research, but it is still possible for you to find a good rate on a high yield online savings account. Rates won’t stay this low forever, but shopping for the best you can get right now will make your future easier in the long run.
