Best Saving Accounts - How To Pick the Best Saving Account?

There are several factors to watch while choosing among best saving accounts, primarily high interest rate, low fees and it has to be safe.

While choosing among the best saving accounts, the first and most important criteria is interest rate. The higher, the better and bank with the highest interest rates will usually win, although there are other factors outside of the interest rate that can influence picking best among available saving accounts, like for example minimum balances, fees and it has to be safe. You need to find a bank that will give you a good deal.

Find a Bank, Consider Annual Percentage Yield

Like said, competitive yield is the first thing to look upon when comparing saving accounts. The best savings accounts these days are at online banks. They consistently pay higher interests and it is possible to find best savings accounts from the big online players, who do not have minimum balance requirements. However, if you have substantial assets to deposit, online accounts may not be the best savings account solution for you. Some in person banks pay more with higher balances.

Choose Type Of Account According To Your Needs

There are different types of saving options. A savings account is a liquid account that generally offers low or no minimum balance requirements, often carries a monthly service charge and generally pays a low rate of interest. The account usually has no restrictions on the number of transactions. A money market deposit account is a high-yield savings account that is FDIC insured and that allows consumers to put their money into accounts that have higher yields, but some withdrawal restrictions. Similar to money market accounts are money market mutual funds, which bring a little higher returns and possibilities, but are not FDIC insured on the other side.

One thing you always need to be aware of when dealing with high yield savings accounts is whether or not the bank has any hidden fees. There are some banks out there that will offer you a high interest rate because they know they can sneak a few fees in there on the back end to make up for it. So watch out at least for...

Check Minimum Deposit Requirements

Some of the banks have a minimum deposit requirement, which is the lowest amount an institution requires to open a saving account and earn interest. Compare the figures and filter those suitable for you.

Is Bank Charging Avoiding Fees?

Another important figure when picking best saving account is to check, how much must be kept in the account based on agreement terms. Some of the banks have no restrictions here while other charges a penalty, if the account goes below this amount.

Monthly Service Fee

Especially with lower deposits, monthly service fee can be an issue while picking best saving account. Free of charge money accounts do exist, do your job and search for them.

Before You Choose...

Before settling on a bank, investigate the features most important to you. The best savings accounts do more than pay interest, they offer you extra features.

FDIC security!

Before you ever deal with any bank of any kind, online or in person, be sure to double check that they have FDIC insurance and that they're a legitimate bank. It can happen, that names of some banks will not be familiar to you and those are especially to be checked. You should also search for reviews on the account to make sure that the bank delivers what it promises.

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation. It provides deposit insurance, which guarantees the safety of deposits in member banks. The FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages banks in receiverships (failed banks).

Even the best savings accounts will present you with problems inherent to online banking. You may find that you want more than just a savings account. If you want a payment account - for check writing, online bill pay, and debit card access - then look for a hybrid account. You can earn a competitive return on your money like you do with the best savings accounts, and you can make payments like you do from checking accounts.

You can read more about how to pick the best staving account and compare interest rates at Bankrate.com

Written by: Goran Dolenc

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Where To Go Next?

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