Saving can be defined as deferred consumption. People put aside money in a bank or pension plan, which specifies low-risk preservation of their money, unlike investments where the risk of saving is considered higher. With savings in a bank being the safest method, the interest rates are so low that many people are discouraged from opening the accounts. Finding the best rate savings can be difficult considering all the thousands of saving's banks and building society options available. One should consider the following tips when looking for the best savings rate.
To ensure you land on the best rate saving available in the market, it is essential to be proactive in shopping around and compare deals. However, the search should be continuing since banks keep on adjusting their interest rate saving, and it may quietly creep down to a less competitive rate without you realizing it. You should ensure you move your savings to an institution that has the higher rates in the market. From the internet, Bankrate.com has up to date rate savings offered by various institutions and may be used to compare rates to ensure you land on a bank that offers above-average yields on your savings.
It is advisable to make sure that even as you are looking for the best rate savings deals available in the market, a thorough research on the institution you intend to keep your hard-earned savings in, is very important. The institution should be well-known and should be federally insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF). There are also some other dubious online copycat banks whose site look and feel similar to the sites of real banks, a pre search of an institution to ensure its legitimacy, verifiable address of its headquarters is very important.
In case you do not require your savings in the near future, it would be advisable to lock it in a fixed account. Fixed accounts ensure higher rate savings than the regular savings accounts.
Since most online banks save millions of dollars on operating expenses because they do not have branches to maintain, they make more profits than the concrete and mortar banks with branches. This profit is passed down to the savers through high interest rate savings. A saver should hence explore the option of savings in online banks but a thorough study of the bank in advance should be conducted.
To lure customers, many institutions offer attractive rate savings to new customers. For best rate savings, you should make the most of these deals. These high rate savings however dramatically drop after a while; one should therefore ensure that they make a note in your diary on when the offer ends so that you switch to the next great deal available.
Renounce loyalty in any bank to ensure you switch to the institution that offers higher rate savings.
Examine the banks fees to be sure that they are in line with other institutions since some banks that offer high rate savings recover the amount by charging high fees on activities such as deposits and ATM withdrawals
Check from your employer on the availability of credit unions within the organization that you work for. Most of these credit unions offer better and favorable rate savings than big bank institutions.
Read carefully the terms and conditions since some of them may not be favorable to you like limiting the number and amount of withdrawals
Tell your friends about the institutions that offer high rate savings. This may earn you an introductory cash bonus.
The following tips will help you out while you are looking for ways to make good rate savings:
- Make the most of introductory offers
- Try using online banks
- Compare rates among various financial institutions to ensure you choose the one where you will make the most rate savings.
Sources and Citations
- David Mark Cordell, Walter J. Woerheide, Roger C. Bird and Robert S. Graber : Fundamentals Of Investments For Financial Planning. (Oct 30, 2004)
- Phelps, Edmund: Golden rules of economic growth. New York. (1966).
- Smita Talati: Perfect Money Saving . Perfect Random House. (Mar 31, 2011)
Most Recent Articles
How Tobook Last Minute Hotels
Travelling outside the country can be much better when you have prepared everything before the flight especially the minute hotels where you plan to stay at. Pre-planned travels are alw...
5 Tips You Should Learn About Hotels Delhi
When you plan on a trip to India and plan to stay in its capital, Delhi, you will be pleased to know that there are several hotels you can choose for your stay. Whether you are there for bus...
Best Places To Get Low Interest Loans
Why we pay interest on loan? Interest is the fee you pay to your lender as compensation for using his assets or money. It is the price you pay on the borrowed fund to him. It is calculated ...