If you really want to invest on something useful with minimum risk, then you can move on with savings account. Interest rates on savings accounts vary from one bank to the other. Certain bank’s interest on savings account might be high whereas some may be low. This is the reason why you have to investigate about the financial institution properly so that you can not only know about their interest rates on savings accounts but also can come across various things and other benefits offered. If you are on a hunt for best savings account, then you must never limit yourself with one or probably two banks. Look and shortlist 5 banks or financial institution who interest on savings account is perfect and suits your needs. Then you need to make a comparison so that you can get to know about the one suiting your needs. There are many online tools for free which can help you in making a comparison. Banks can help you earn with the interest on the balance you have. The more is the money in your account, the more you will earn.
Interest rates on savings account
- It is the amount which a specific bank pays to you for the amount you deposit. The interest rate completely varies from a bank to the other. It can either be compounded daily or yearly or monthly.
- The interest will be credited by the bank at every month end.
- Smaller banks might have better interest rates when compared to the larger ones. It completely depends.
- Before picking a financial institution for opening a savings account, you will have to make a complete research on every factor associated to it. Check if it will meet all your basic requirements.
- The banks will have various tiers of interest rates based on the amount of cash you deposit. The interest rate will grow as the amount you drop in grows. The interest rate will fall depending upon the balance you possess.
- The savings account will help in keeping your money completely safe. It can help you at various situations like: buying a brand new car, making a down payment for the new house, buying a property and so on.
While opening a savings account, there are many things connected with it which you need to know about:
- APY (Annual Percentage Yield): The first and foremost step is to visit the specific bank in which you have checking account and inquire about the interest rates of their savings account. Check with the annual percentage rates as it is connected with the current interest rates.
- Investigate: You need to compare the interest rates which are quoted by the current bank with the other bank’s interest rates. You can use online comparison tools in order to find the best available interest rate offered by the banks. Credit Unions are the ones who offer high interest rates on their savings account. So you can try looking at them. Apart from interest rates, you also need to look other facilities and benefits offered by the banks. Check if they have the option of accessing the account through online so that it will be convenient for you to use it. It can be accessed at any point of time.
- Minimum Balance: This is the most important factor to look for. There are certain banks which will ask you have to have high minimum balance. This can be a drawback. Look for the ones which ask only for low minimum balance with high interest rates so that you can earn well.