Most people think that opening a savings account is the first step when they want to take control of personal finances. It is true that this can be a first step towards taking control of your finances. However, a standard saving account earns very little interest. When you factor in inflation, you will realize that you might end up losing money when you put your money in a standard savings account. This is where the High Yield Savings accounts come in. These accounts pay a significantly higher amount of interest. High yield Savings account interest rates will help you meet your goals faster. There are certain things that you should be concerned about when you want a High-Yield Savings account. These things include;
- The rate of interest paid
How much interest are you going to earn on your deposit? This is question that you must find an answer to when you want to open this type o account. You should also check how long the interest rate that you are promised will last. Ask whether the interest rate quested is just an introductory rate or if it’s going to change at some point.
- The requited initial deposit
How much money will you be asked to deposit when you are opening an account?
- Minimum balance required
How much balance are you required to maintain in the account to benefit from the advertised high interest rates?
- Compounding method
How will the interest rates be compounded? Will it annually, semiannually, quarterly or monthly? The formula used determines how much money you are going to have at the end of a given period of time.
- Account set up and maintenance fee
How much money will you be asked to pay to set up and maintain your high interest savings account? Make sure that you are not dealing with a financial institution that charges very high fees.
- Accessing funds
What option can you use to aces your funds? Will you be able to use an ATM? How much will you be charged per withdrawal?
Makes sure that you have all the information about the account you intend to open. You have to be sure that you are making the right choice.