Finance Saving

What Is a Savings Yield


In an effort to encourage their customers to save money, some financial institutions will offer high yield savings accounts which provide a better rate of return than regular savings accounts. Maintain a savings account can be advantageous if you are unsure of where to invest your money or looking to establish an emergency account, to shield you from any unpredictable financial calamities. Here are some of the major benefits of applying for a high savings yield account and how to find one.

High savings yield accounts offer a number of benefits over other investment vehicles, such as certificate of deposits and mutual funds. One of the main benefits of offered by high yield savings accounts is the ability to withdraw money quickly at any time, which is rarely the case with other long-term investment options. Account holders are able to make unlimited withdrawals by ATM, teller, or mail. However, federal regulations limit the number the electronic, telephone or preauthorized transfers per month. A high yield savings account is great way for those people who don’t have a lot of money to invest and would like to establish a saving habit using a savings account. Most high yield savings accounts will require applicants to come up with a minimum amount while opening the account. These amounts can range as low as $1 to $25, but some institutions will require considerably higher amounts. In addition to that, account holders are often required to maintain a certain minimum balance, failure to do so will often result in considerable monthly fees.


High savings yield accounts are extremely safe thanks to the protection they receive from the Federal Deposit Insurance Corporation (FDIC). The FDIC provides insurance for high yield savings account for up to $250,000 per account. This means that if the institutions you have deposited your money with goes “under”, you are guaranteed to get your money back. If you would like to deposit more money than the federally insured amount, then you should open more than account to make sure than you are fully covered. Before you select a high yield savings account is always advisable to consider your goals and dreams, in order to determine the right financial institution to deposit your money with. The reality is some financial institutions will offer higher interest rates than others. However, with those returns may come additional restrictions on the number of withdrawals you can process or the minimum deposit you should maintain in the account. Try to select a high yield savings account that is able to meet your financial goals, but offers the right amount of accessibility for your personal needs.

Tips and comments

There are many options you could use to search for a high savings yield account, such as your local bank, brokerage or over the Internet. There are certain banks that process their transactions primarily over the Internet. This allows them to keep their costs down, and to provide a higher rate of return on your high interest savings account. Make sure to read through the terms and conditions before you sign on the dotted line, to make sure that you can comply with all the stipulated requirements.

By bernard munyu, published at 04/05/2012
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