Finding the best savings rates will vary with each institution that you research. Some companies offer higher interest rates from others based on their investments. To ensure that you are making the most amount of money possible you need to take advantage of the highest savings account rates you can find. Some of the factors that impact the savings account rates include the following:
- Savings rates established by the Fed
- Economic health
- Value of the US dollar
- Financial integrity of the bank or credit union
Interest rates fluctuate with institutions and they can go up and down based on the previous factors. Since savings account rates do vary it is important to research rates often and move your money to a new lender if they will pay out a higher interest rate.
Money Market Accounts versus Savings Accounts
Typically the best savings account rates will come from money market accounts and not so much from the savings accounts. Money market accounts are more attractive to investors based on the interest rate and the potential earnings they can provide. Finding the best interest rates will require some research as the financial institutions are very competitive and will continue to offer a varying degree of interest rates to try and attract investors. RateCatcher.com offers a savings account comparison chart to help make this research easier. The chart shows what banks and credit unions are offering the highest savings account and money market rates today.
Establish Savings Goals
To find out how much money you could potentially earn from your money market account or savings account you need to measure what your current savings rate is and to establish some goals. Look at how much money you are setting aside to savings and then deduct the number of withdrawals from your savings to see how much money you earned from your savings account over the course of a year. To make it easier you could use the savings account calculator to see how much your savings account can earn you over a period of time.
Establish a goal for how much money you would like to save and then determine what your savings rate needs to be in order to reach this goal. Savings goals vary based on things like long-term retirement savings or saving for a short-term investment like a down payment on a home or college tuition. Adjusting your budget to reflect your savings goals will make it easier for you to save the money. Seek out a savings account that provides you with automatic transfers to the account, making it easier for you to save.
Check on Fees
Many of the savings accounts will offer you a decent rate but their fees may take away from the total amount of money you could earn. Read all the terms associated with the savings account to see which ones do charge fees on things like withdrawals or transfers. There are many savings accounts out there that do not charge any fees allowing you to earn more.
Opening a High Yield Savings Account
Speak to your financial institution in order to find out about their high yield savings account rates. While these accounts are available online, some financial institutions will offer high yield savings accounts to certain customers based on the following criteria:
- Ability to make a large initial deposit
- Maintaining a high balance
- Limiting transactions in and out of the savings account
Although valued customers are typically offered these accounts, other customers can enjoy them as well from banks like ING and Chase as they are offering incentives including a $50 (this offer may end 8/31/2011)matching deposit when you open an account or a customer referral bonus.
