Getting the Best Interest Rate on Your Savings

04
August

It seems strange that the best interest available may not be on a savings account. You can get as much as 4% interest. However, it is available not on a savings account, but on a high-yield checking account. Even the best 2-year CDs may pay 2%, so these checking accounts definitely offer the best return available.

4% APY applies to balances up to $25,000 in a Danversbank Free Rewards checking account (Boston area.) Balances up to $10,000 received that much interest from AmericaNet Bank and Evantage Bank through their Reward Checking accounts. These are online banks owned by a banking group located in Oklahoma. Up to $10,000 receives a 4% interest rate with Capital Bank’s Smart Checking (North Carolina,) and ViewPoint Bank’s Absolute Checking provides this same interest rate in its 27 branches (Dallas/Ft. Worth area,) There are requirements involved: 15 check card purchases must be made monthly to qualify. Most high-yield checking accounts require 10-12 purchases. No matter where you live, you have access to these rates since the accounts are available online.

The best savings account interest rates vary according to the economy. Whatever the economic climate, a bank account is still the safest place to put your money. Savings accounts are insured by the Federal Deposit Insurance Company (FDIC) so that if the bank fails, you will get your money back up to a certain limit. A bank account is not the best grossing investment possible, although it is secure, the interest rates don’t provide much growth.

CDs still offer the best interest on actual savings. You just need to check around. Parkway Bank (North Carolina) offers one of the best local rates at 3% APY on its 36-month CD with a minimum $1,000 deposit. A 24-month CD still beats the national available deals at 2.30% APY. These certificates must be purchased at one of Parkway’s branches, not online.

Southern Bank’s 5-year CD rate on 60-month certificates is 3.50%. They provide opportunities for savers online (only residents in Missouri and Arkansas.) An affordable $500 minimum deposit is required, but early withdrawals will cost you–12 months’ interest.

If you are intent on saving money, you want the best return possible on money you deposit. Choose an account with the best interest rate available. Flagstar’s savings rates are among the industry’s highest. They have a variety of accounts from which to choose. They provide easy access to your money, FDIC insurance, and other benefits. Along with high-yield savings, Flagstar savings accounts provide low or no minimum balances, free ATM access, direct deposit, interest applied monthly, and mobile access from phone, PDA, or laptop. By visiting their website, and entering your zip code, you can find the best rate available on internet savings accounts in your area.

Shopping for a good savings interest rate isn’t all that difficult. Compare rates in your neighborhood banks, and online. Getting information from financial advisors and blogs that talk about the best savings rates is also a good idea. Determine whether or not there are fees associated with the account. Is a minimum balance required? Are there transaction limitations? When you have this information, you can make a decision as to which savings account best suits your needs.

When you get ready to deposit your money, ask for the bank’s best interest rate. Many banks require direct deposit, or a specific number of monthly transactions, etc. If you can meet these requirements, the bank will give you the best possible rate.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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