| You know the saying, " Today is the first day of the rest of your life" well it's true. No matter what shape your finances are in you can always take steps to improve them starting today. One of those steps will probably involve opening a high interest saving account.
You have more choices than ever when it comes to opening a savings account. You don't just have to stick with your local bank. You can open one online at many large national banks.
There is some evidence to suggest that an online account will make you more interest since the bank doesn't have as much overhead. This isn't written in stone though so make sure you check. You will usually need a higher deposit to open a high interest rate account and will often have a higher minimum balance to maintain.
Before you rush off to open an online savings account here are a few points you should keep in mind:
1) Interest rates are always changing so before you make your decision visit a website like bankrate.com. But remember, interest rates should be only one consideration when choosing a bank.
2) Make sure whatever bank you choose, whether online or off, has a very competent and easily accessible customer service department. You need to be able to talk to someone if you ever have a question or problem.
3) Make sure you fully understand any fee's associated with your account. Some savings accounts only allow you a certain number of withdrawals a month after which time you will be charged fee's. You need to know this and determine if it will fit in with your habits.
You may also be charged significant fee's if your balance falls below the required minimum balance. Make sure you know beforehand. Even a bank that offers a high interest rate may not be worth it if they are going to 'nickel and dime' you to death with a bunch of fee's.
4) How much money will you need to deposit in order to open the account? Usually the larger the deposit the higher the interest rate, but not everyone has a lot of money to open an account.
5) Do you have to maintain a minimum balance? If so, how much and what fee's will be accessed if you fall below that level? Again, think about your situation and decide whether or not that arrangement will work for you.
6) Most banks are FDIC insured, online or off, but don't take that for granted. Always make sure the bank you choose is FDIC insured. (If it's a credit union it will be NCUA insured).
It doesn't matter if you open your account at your local bank or choose an online bank. The important thing is that you find a way to put money aside so that if something unexpected happens you won't have to rely on using credit. Opening a high interest saving account is a great way to take control of your finances, start today. |