High interest high yield savings accountThe current economic downturn has landed us in the following situation.
- Most of the market investments have given negative returns over the past one year.
- In order to boost the economy, Fed has reduced interest rates to practically zero percent.
- Several Banks are prone to the risk of bank failure.
How to choose the top High Yield Savings Account best suited for you?In addition to high yield, it is important to pay attention to the following when you try to choose the best savings account, or rather a savings account which best suits your purpose.
- Are the Interest Rates for the Savings Account attractive?- This is naturally the first number which will attract you to open a savings account in a bank. Several high interest rates savings account are mentioned below.
- Is your high yeild Savings Account FDIC insured?- This is extremely important. Remember even the big banks are not completely immune to failure. So while opening a savings account, it is important to choose a bank which provides not just attractive interest rates but also is protected by FDIC so that your hard earned money remains in safe hands.
- Does the Bank have any hidden fees or charges? - Fees and charges can wipe off a big chunk of the income earned in the form of interest on your savings. In order to actually get the benefit of high interest rate offered by the bank, it is important the bank has no fees and especially hidden charges. A savings account with no minimum balance requirement would be great - because even if you have plans of keeping large amount of money in your savings account, the no-minimum-balance feature will allow you to pull your money out with any penalty in case you find a better savings account or find out that the bank is not 'safe' anymore.
- Customer Service, Ease of Transactions, savings account reviews, etc. - Last but not the least it is important to have a hassle free transactions like fund transfers, making CD's, writing checks, etc. A bank with good customer service is certainly important.
List of FDIC Insured banks which offer high yield savings account with attractive Interest Rates.
GMAC Bank Savings Account: Interest rate - 2.75% APY (Annual yield). No fees for balance above $500. Additional features like checks, ATM Card.
FNBO Direct Online Savings Account : Interest rate - 2.4% APY (Annual yield). Named best Online Savings Account in Kingpilners Personal Finance Magazine in Dec 2008. No fees, no minimum monthly balance.
HSBC Direct Online Savings Account : Interest rate - 2.25% APY (Annual yield). No fees No minimum monthly balance. Names Best Online Savings Account by Kingpilners Personal Finance Magazine in 2006.
E*Trade Bank Savings Account : Interest rate - 1.95% APY (Annual yield). $1 minimum required to open a savings account.
ING Direct Online Savings Account: Interest rate - 1.65% APY (Annual yield). Perhaps the most popular online savings account.
Bankrate.com is a website where you can find the latest information and compare savings account yields for various banks and also get information on CD rates, etc. I will update this post later to list the best CD rates available. Meanwhile visit bankrate.com. Comments and opinion are encouraged.