To be in control of your finances, opening a savings account could perhaps be the first step. However, if you are looking for returns from a savings account, you might be disappointed. They yield very little interest, generally, though they are definitely safe options. If you are looking for a high interest savings option, cheer up, because fortunately many banks have this on offer. Here are some tips on how to choose and open a high interest savings account:
You can open a high interest savings account online, and they are also available through brick-and-mortar banks – these are banks which deal personally with their customers.
Now, the first step could be to approach your current bankers and ask them about availability of high interest savings accounts with them. Enquire whether you can be given a higher interest rate because of good credit history with the bank and the current status of your account with them. If this works, you need not look any further and can enjoy high interest savings through your existing account with the bank.
However, if the first step does not yield results, you can look instead for a list of banks that offer the opening of a high interest savings account with them. This can be done through visiting the branches of other banks that are close to where you live, or searching online for such banks.
To decide upon which bank to go with, here are some questions you could ask before measuring the various options:
What is the rate of interest paid? This is an obvious question, as this is what the whole matter revolves around. Bear in mind that often, a bank will pay a high rate of interest to attract customers, and will lower that rate of interest later. Check that the high rate of interest is constant with the bank you choose.
What is the initial deposit required by the bank? If you have the money to spare that will be needed to open a high interest savings account with the bank, this step is clear.
What is the minimum balance required by the bank? To maintain your high interest savings account, or any other account for that matter, you need a minimum balance to be present in it at all times. This is something you should remember as a lower amount will result in a penalty.
How easy is it to open an account and are there any fees for the same? You should know whether there are any fees for opening a high interest savings account with the bank, and also whether these fees are to be sustained to enjoy high interest privileges.
Tips and comments
How can you handle deposits in your high interest savings account? As high interest savings accounts are often offered by online banks that have a strong internet presence, you should be able to transfer money to and from them easily through the internet, but you could check and see whether other options are also available.