A lot of people have large amounts of savings, but no savings account. Storing money in your current account makes no sense because you don’t earn interest on it. Your money is essentially just sitting there losing its value. Over time, and with inflation, if your money is not held in a savings account, then it will depreciate.
Opening a high-yield savings account for yourself or your business is very easy and will ensure that your savings increase in value, rather than decrease. But how are you supposed to find a high-yield savings account?
This post will answer that question for you.
Independent Guides
One of the most effective ways of finding a savings account is to read independent guides, written by financial experts. Such articles covering online savings accounts that earn interest will help you to make more effective decisions. The good thing about these guides is that they usually provide a lot of information about the accounts that they recommend, which can help you to find the account that’s right for you.
Before trusting what a guide has to say, however, read their reviews first. A guide site’s reviews will help you to gauge their authenticity and credibility.
Shopping Around
If you intend on opening a savings account, then you need to shop around. As you will see when you begin reading independent guides, there are many different savings accounts on offer. You need to find the one that’s best for you.
Ideally, you should find an account with a high-interest rate. The higher an account’s interest rate is, the more you will be able to earn on your savings. You should be aware though, accounts with high-interest rates tend also to have long maturation periods.
Financial Institution
Just as you need to read an independent guide’s reviews before you consider taking their advice, you also need to read a financial institution’s reviews before you open an account with them. Just because a bank or financial institution has a lot of customers and money, that does not mean they are good.
In fact, some of the most well-established banks can be a nightmare to deal with. You also need to remember the U.S. is dealing with a period of financial instability at the moment, so selecting a bank that’s not performing well good be disastrous for you if we enter a recession.
Additional Bonuses
Some banks will give account holders bonuses, like points for every deposit they make, that contribute towards holidays. Some savings accounts give cashback, too. When you read an independent guide, it is likely that they will tell you about each recommended account’s bonuses.
The better an account’s bonuses are, the more you will get out of holding it. Sometimes, you can negotiate for extra bonuses too. If you have any queries or concerns about the bonuses that an account offers, then you should reach out to the financial institution and ask them for help.
Maximum Deposit
Some accounts have a maximum deposit, meaning you cannot put more than a specific amount in your account each month. A maximum deposit limits the amount of your savings that you are able to deposit. This can be very annoying for people who want to make a large deposit, in the thousands.
Usually, deposits are capped at between $100 to $1,000. If you have a lot of savings currently and want to put them in an account, then you need to shop around and find the account with the best rates, but also the highest maximum deposit.
Some accounts also have a minimum deposit, meaning if you do not deposit more than a certain amount, then you can receive fines and penalties.
Maturation Period
Some accounts have maturation periods. A maturation period is pretty common when it comes to high-yield savings accounts. If you have never encountered maturation periods before, then they are when banks or financial institutions refuse to let you access your savings for a fixed period of time, usually around two years.
If you insist and try to remove money from your account, then you can expect to have to pay fees and penalties, which can be very high.
Credit Check
One last thing to think about is your credit score. Some savings accounts require applicants to undergo a credit check. If you have a very low credit score, then this is not something that you should allow.
If your credit score is low and you have it checked, the bank or financial institution will turn you down, and your score will drop even more. It’s a lot better for you to find an account that does not perform credit checks. Usually, credit checks are only performed on extremely high-yield savings accounts.
If you want to earn interest on your savings, then you need a high-yield account. However, before you can start earning interest, you need to open an account. This post’s advice will help you to do that.
