Save Even More Than Before
With hundreds of financial institutions that offer a decent yield and return, finding a high-interest online savings account is easy. The challenge lies with where should you stick your money and build your nest egg. Knowing what to look for and comparing the terms is key to finding one that works best for you.
Choosing the Best One
With so many savings accounts to choose from, the selection process can feel daunting. Narrow down the search by looking for a few key indicators, including:
- Accounts that offer online access including easy-to-follow mobile apps
- Setups that include zero to minimal fees, including maintenance and minimum balance
- Low deposit and easy sign-up requirements
- A high yield or return that increases as more money is deposited over time
These perks are a good starting point to work from and compare before making a final decision. In addition, look for reviews online and ask friends and family for recommendations.
Why Not Stick to an Existing Bank Savings Account?
Opening a new savings account gives you an additional channel to save money and work toward a fresh goal. Instead of going the traditional route and investing in your local bank, consider an online-only savings account. With less overhead, these banks offer more incentives — including up to 2.40% APY with minimal balance requirements where traditional banks have an average of 0.9% — easy ATM access and an excellent cash back return policy.
Check out Some Top Contenders
The APY, or annual percentage yield, stands for the compound interest the account generates in a fiscal year. When sifting through the plethora of online savings accounts, we’ve narrowed it down to some of the most popular top contenders. Here are a few to check out (rates are accurate as of May 2019 and subject to change) :
- CIT Bank 2.40% APY – Maintain $25,000 balance to earn APY and deposit $100 a month
- Popular Direct 2.39% APY – $5,000 min to open
- PurePoint Financial Online Savings 2.35% APY – $10,000 min to open
- FNBO Direct 2.25% APY – $1 to open and no monthly fees or charges
Once you choose an account, be sure it meets the requirements you are looking for. Also consider the withdrawal penalties, if applicable.
What to Do With That Money?
With most high-interest savings accounts, the rates are often variable and not fixed. This gives money a chance to grow, but it also fluctuates based on the current market rates. Many people also open up a high-yield IRA to save for retirement using money from other savings accounts. This allows them to diversify funds and direct them toward a variety of investments to earn even bigger returns.
There is no guarantee anyone will be a whole lot richer with a high-interest savings account. Initially, you need to pay careful attention to where you deposit your money. From there, the key is building a nest egg over time to get the maximum reward in the future.
~Here’s to Your Financial Health!
Copyright 2019 – FinancialHealth.net