Depending on how much you are willing to invest in savings accounts, you can choose from a variety of options. There are high-yield accounts, interest-bearing accounts, and traditional savings accounts.
High-yield savings accounts
Whether you’re saving for a short-term goal or planning for a long-term project, high-yield savings accounts can be a good way to earn interest on your money. The key is finding the right one for you.
Several online banks offer these high-yield savings accounts. In addition to earning more interest than traditional savings accounts, these banks typically have no minimum balance or monthly maintenance fees. Often, they also have a mobile app that makes it easy to access your account.
There are also credit unions that offer high-yield savings accounts. These accounts carry the same FDIC insurance as regular bank accounts. If your bank goes out of business, the FDIC guarantees your account’s safety.
If you need a little help choosing a high-yield savings account, you might want to try Bankrate’s compound interest calculator. It can calculate the potential earnings on any savings account. You’ll need to know the time period you’re planning to use the funds, as well as the amount you plan to put into the account.
Traditional savings accounts
Having a traditional savings account is a smart financial move. Not only is it a safe place to keep your money, it’s also a good way to ensure that your money grows over time. Depending on the bank or credit union you choose, the interest rates will vary.
The best savings accounts are ones that allow you to manage your money with ease. Some banks offer online banking and mobile banking options that let you access your money wherever you are. Some even reimburse your ATM fees. The best ones are FDIC insured.
Despite all the newfangled innovations and financial buzz words out there, traditional savings accounts still have a place in modern financial plans. Whether you’re a novice or a seasoned financial veteran, the best savings account for you depends on your individual needs.
The best accounts will have the highest interest rate, most convenient access to your money, and the easiest ways to deposit and withdraw it. However, you should keep in mind that a high rate doesn’t always mean good value.
Variable-yield savings accounts
Depending on your financial needs, a high-yield savings account can be a great place to store your money for the long run. They offer higher interest rates than a traditional savings account, enabling you to build up your savings in a faster time frame.
When you’re looking to save money, the annual percentage yield (APY) of a savings account is one of the first things you should check. Usually, the higher the APY, the better. In the past, some high-yield savings APYs have exceeded 2%.
You can use a compound interest calculator to calculate the potential earnings of any savings account. However, the APY may change as the Federal Reserve changes its benchmark interest rate.
A high-yield savings account can be found with both online and physical banks. Most online banks have a lower minimum deposit requirement and do not require monthly fees.
You can use an app on your phone to transfer money from your high-yield savings account to your checking account. Some banks will allow you to make up to six transfers each month without incurring a fee.
Interest-bearing checking accounts
Having an interest-bearing checking account can help you to meet your savings goals. However, before you decide on an account, make sure you are aware of the differences between these types of accounts. It’s also important to read the fine print so you understand how the account works.
There are two main kinds of checking accounts, interest-bearing and non-interest. Both can be accessed at most financial institutions. Some may require a minimum balance, while others are free. Regardless, you need to find an account that suits your needs.
If you have more money than you can keep in an interest-bearing account, consider opening a savings account. This will allow you to earn more interest. You may also want to consider investing. These accounts are usually more liquid than interest-bearing checking accounts.
You can open an interest-bearing checking account at an ATM or at a branch location. Some financial institutions may offer an interest checking account without requiring a minimum deposit. Some require a monthly maintenance fee.