The best savings account rates will help you to save a lot of cash. There are many reasons for opening a savings account. Even if you save a little or more, you need to open a savings account. To open a savings account, you will have to investigate about the financial institution properly. You need to look at the savings account rates and pick the best saving account that suits your needs. Search for the high interest savings accounts so that it can give you a high yield. Saving money is really very important and people save cash for many different reasons. But the main reason is to secure for the bad times. The savings of one individual differs from the other and hence the ideal saving account for a person is the one that suits all the requirements. There is nothing called the best saving account, it entirely depends if the account holder is satisfied with the savings account interest rates. Before picking one, you need to investigate about various service providers and shortlist the best saving account rates. Make use of a comparison website through which one can literally know the perfect savings account fulfilling all the needs. There are many types of savings account which you need to know about:
Regular savings accounts: If an individual has limited amount of cash with them and if he or she needs to begin saving with that minute cash they have in their hands, then it is better to opt for a regular savings account. With the help of this account, one can easily get access to their funds at any time. If you are really looking one of this account types, then you can move on with a local bank or credit union because they will ask you to have low minimum balance, may be about $100 and also lets you to withdraw limited money so that they can help lock your savings. They make sure that you don’t take out too much money from it. These accounts are completely safe as they are insured by FDIC (Federal Deposit Insurance Corporation), which means that if even a bank fails to secure your cash, this FDIC will take care of it so you don’t have to worry about losing your cash.
Money market accounts: These are offered by almost all the banks, investment firms and credit union. The cash that you deposit in the bank will be used to purchase certain shares and will also be invested in short term bonds which are usually issued by the huge corporations as well as governments. These are basically similar to regular savings. But a drawback is that, it requires you to have high minimum balance when compared to regular saving accounts. It can be from $700 to $25000. Even though the balance required is high, it will ask you to pay you high interest rates and this is the reason why many people are pouncing on it.
CD (Certificate of Deposit): This is a fixed interest rate type of savings account which is offered by banks and credit unions. These will pay you the best rate of interest. In exchange of this ideal interest rate, you will have to leave your cash in deposit for a particular time duration which is referred as “maturity”. The maturity can be from few months to many years. If you happen to withdraw the cash prior to the specified time duration, then there will be a penalty incurred upon you. These CDs can be bought for different amounts ranging from few dollars to $100000 or even more.