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Getting the Best Savings Account Rates
By plrprousers | August 10, 2009
When it comes to savings and investments the name of the game is getting a good return on your money. There are countless savings and investment options out there, but if you are looking for a secure place to put your money with a reasonable rate of return, a high interest savings account is probably the choice for you.
The main advantage of high interest savings account products, as opposed to standard checking accounts, is that they offer a considerably higher Annual Percentage Yield (APY), so your investment will grow much faster.
If your looking to set long term savings goals such as buying a car or making a house deposit then a high interest savings account is ideal. In addition, the longer you can leave your money in the account and the more you can invest, the more you will see it grow.
However, high interest savings accounts do not come without a price, and that price is flexibility. In fact, the accounts offering the highest interest rates are the ones that are the least flexible.
Below are a list of possible limits or restrictions to be found on some high interest accounts
* You may be required to make an minimum initial investment and/or lodge a certain amount to the account every month;
* You may have to keep the balance over a certain figure over a certain length of time;
* Make limited withdrawals from the account.
Not all high interest accounts impose all these conditions; some have almost no restrictions while others have only a few. Also be aware that if you break the terms and conditions you may not be paid interest on your investment or you may have to pay fees or charges.
Therefore it is critical that you know what you want and how you will use the account before settling on a savings account. If you need a lot of flexibility with your account that is fine. Even if you have to settle for a slightly lower interest rate it’s likely to be far higher than most checking accounts.
Hopefully you will be able to start off by investing a lump sum and then keep this growing fast with regular deposits and allowing funds to grow without regular withdrawals. This way you can avail of the best offers and really watch your money grow.
When reviewing the offers on the marketplace it can be seen the best offers are typically found online. Many of the big high street banks offer the best rates with their online high interest accounts while maintaining a good deal of flexibility.
With banks keen to boost their holdings balance in recent times it has become a competitive market and good time for savers. Look for a good high yield savings account that suits you that charges no transaction fees or set-up charges. Also, you should not be required to have a checking account with the bank you wish to save with. You should be able to transfer from any account into your savings account, online and free of charge. Importantly, make sure all your deposits will be FDIC insured.
Don’t get caught out by intro rates that only last a few months and then drop off to a rate well below the market leading rates. Also, many savings accounts are graded, so that the interest rises as your deposit grows.
This knowledge will put you in good shape for researching the offers available to you. Take some time to explore the options to find the right high yield savings account for you.
Tips from Richard at the Click4Group network.com.au which compares products including Bankwest savings to help consumers make an informed decision.
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