Earn More Than The National Average With These Savings Accounts
Everyone should have money stashed away in a savings account whether it’s an emergency fund or money you’ll use for a big purchase. No matter what you’re saving for, there’s an incredibly easy way to make extra money off the cash in your savings account.
All savings accounts earn interest — but the average interest rates offered at traditional banks are very low. The largest banks in the U.S. offer shockingly low interest rates of just 0.01 percent APY, CNN1 reports. You should be earning more, and you can. You just need a high interest savings account.
Why Higher Interest Matters
High-interest savings accounts are just like regular bank accounts, but they offer better financial perks. First and foremost, high-interest savings accounts give you more interest every year, and they’re typically offered by online banks only.
Online banks can offer customers better, higher interest because they don’t have the same overhead costs as traditional brick-and-mortar banks. Just like a traditional bank, online banks are FDIC-insured, so your money is protected for up to $250,000 per account.
High-Interest Savings Accounts Give You More Money
If you open a savings account with an interest rate of just 0.01 percent, it’ll take much longer to earn additional money on your savings. For example, if you open a high-interest savings account, you can earn an interest rate of 1.80 percent APY – an interest rate that’s 180 times higher.
If you deposit $10,000 in a traditional savings account that pays 0.01 percent APY, you’ll earn just $1 after a year. By contrast, that same $10,000 deposited in an account with 1.80 percent interest will earn $180 in one year.
High-Interest Savings Accounts are Flexible
High-interest savings accounts are more flexible than other investment choices. CDs, a popular investment choice, penalize you if you make a withdrawal before they mature. Retirement accounts can’t be accessed, and if you do try to take money from a 401K, you’ll have high penalties to pay, as well as federal tax fees.
A high-interest savings account, however, allows you to make up to six withdrawals or transfers from your account each month. You’re also able to open an account online and can access your information 24 hours per day, seven days per week. Online savings accounts may function like regular savings accounts, but they come with many more perks.
You can also send money to your account by wiring funds to your online bank or purchasing a money order made out to yourself. Some online banks have scanning capabilities, allowing you to scan your money order to make a deposit. Need even easier access to your high-interest account? Many online banks lets you link your online savings account to Paypal and transfer money from Paypal.
Make the Switch Today
Ready to open a high-yield savings account? There are plenty of options: high-interest savings accounts are offered by many different banks, investment companies, and financial providers. Make sure to compare interest rates so you’re getting the best rate available.
You should start by researching the different offers available. There are numerous options available that pay more than 0.01 percent interest. Some of these accounts require no or very minimal opening deposits, but some may require you to keep a high minimum balance. After you’ve researched the different accounts and chosen one that meets your needs the best, you can open your account online by going to the online bank’s website.
If you’re trying to increase your savings, choose a high-yield savings account instead of a traditional savings account. These accounts are simple to open and pay as much as 180 times what the large banks pay in interest on a typical savings account. When you open a high-interest savings account, you’ll be able to meet your savings goals much faster while still enjoying easy access to your money.
Interested in the latest high-interest savings accounts? Start a search today.