Savings Account Rates

In the last couple of years, savings account rates have taken a bit of a battering due to one reason or another, more so politically. With the interest rates being reduced regularly so as to provide an economic growth stimulus, savings rates have in recent times suffered a real setback. However, the recent injection of funds into the suffering financial establishments seems to be working wonders as most banks have introduced new and viable saving strategies that are attracting hordes of new savers who are opening new saving accounts daily.

How to choose the most yielding saving account
On the surface, all savings accounts seem to be somewhat similar, as normally you add money to the savings account so as to save it, as opposed to using it. Basically, that money earns some sort of an interest, although the account holder is supposed to pay some small amounts of money to the bank as an account maintenance fee. Mostly, this maintenance fee is charged monthly. Overall, savings accounts operate the same way apart from the interest rates charged or earned from them. The differences between these accounts may seem small to many account holders but in the long run they add up to significant amounts of money that can’t be simply ignored.

If your plan is to open a savings account that will offer you the highest interest rates in the market, consider the following points:

Limits on the amounts that can be withdrawn – Some financial establishments impose such restrictions as limiting how much an account holder can withdraw at a given time. This enables them to build some money into their accounts and earn better savings account rates. In fact, the majority of financial institutions stipulate that no withdrawals should be made from some particular savings accounts whatsoever until some time in the future.

Minimum balances and deposits required – Most high interest savings accounts are designed to induce a regular saving regime and to discourage withdrawals so as to build up some money in the said accounts. For instance, a new account holder may be required to make a minimum deposit of such sums as $50 per month, although there may be a ceiling deposit requirement of perhaps $500 per month. Other establishments may require that the account holder maintain a minimum balance that is kept in a linked transaction account for the savings account to start earning them high interest rates. Some financial institutions require that the account holder keep a minimum balance of such sums as $5000 before their savings account could start earning them some money. Failure to comply with this minimum balance requirement in the linked account reduces the accounts earning potential.

Savings interest rates being offered – Savings interest rates for high interest savings accounts is a variable rate that is subject to the prevailing economic policies and can change if the economic circumstances demands. It is possible that the interest rates on offer at a given time may apply for a limited introductory period, so carefully check them out before opening a particular savings account. Normally with these types of offers, after the expiry of the introductory rates, the said saving interest rates revert back to normal rates. So, it is advisable to check both the introductory interest rates on offer and the normal savings interest rates so that you don’t get surprises in future.

The best savings account rates
Mostly, the interest rates offered for a majority of savings accounts is usually low. However, there are savings accounts where an account holder may receive a good rate of interest, on top of other perks. A new account holder should be able to select the best amongst them so as to enjoy maximum savings account rates. Generally speaking, a good savings account rate enables an account holder to be frugal and start a saving regime as part of their expenditure. In so doing, they are able to get better rates of return on their investments.

In the USA, the best savings account can give an account holder interest rates ranging from 2.4% to 6%. The medium range offered by most financial establishments is an average of approximately 3.5%. Last but not least, it is quite easy to find a savings account that yields the highest possible interest rates and that can make your money work for you. Just remember; always undertake proper market research before finally settling on a particular financial establishment.

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