There are many factors which one must know about the savings accounts interest rates before opening it. You need to research about various things so that you can pick the best savings account suiting your basic requirements. The savings account interest rate will differs depending upon the economical condition of a country. The rates can be low or high, it completely depends on the place where you reside. When you really have lot of cash piled with you, rather than investing in stock market with the intention of making it double, you will have to drop them in best bank with high savings account interest rate. They are the safest place to let your money grow over time. They are also insured by FDIC (federal Deposit Insurance Company) which means that even if you bank fails to take guarantee for your money, then FDIC will. You can earn interest based on the money you drop in the savings account. The more is the amount of money; more will be the interest because the banks operate on tiered levels which literally means that you can have your money grown based on the money you deposit in your savings account.
The savings accounts interest rates will differ from one bank to the other and can be classified in to 2 types which are: Fixed and variable interest rates. The fixed interest rate is the one whose value doesn’t changes till the time period of the account ends. Once they are fixed by the bank, they are constant and will be carried out till the term ends. The variable rates are the ones which will change over time and it completely depends on the current market value. It can either increase or decrease. It will entirely depend on the present economical condition of the country. They are little riskier to take because you might end up paying more sometimes if the interest rates raises. This is the reason why fixed ones are better.
Most of the savings account will have different requirements and it will vary from one financial institution to the other. Some will ask you to have low minimum balance whereas few banks will ask you to have high minimum balance. There are certain banks which will entice you with high interest rates but they might have hidden charges which one might not be aware of and hence don’t go for it blindly. Investigate about the banks and the associated bank account properly through online website or through local newspapers or through reviews or through people whom you know. There are also certain banks which will ask to have limited transactions in a month for your savings account and if you exceed the limited transactions, then there will be penalties. You need to know the entire details of the saving account associated with a specific bank.
Monthly savings calculator
When you have your savings account opened, definitely maintain it is really important. There might be complex calculations connected to it and hence you will have to use monthly savings calculators which are there in online for free and can be downloaded at any point of time. There are many online websites offering these calculators with advanced options. They are user friendly and completely easy to use. You don’t have to remember any more mathematical formula. You need to just input with certain values in the associated fields in order to achieve accurate result related to your savings account. The calculator will help you to know about amount of cash deposited in a period, intervals in your deposit, annual return, savings balance, inflation rate etc.