Savings Account

Is It Bad To Keep Money In A Savings Account?

Saving some money can be a vital part of any well-elaborated finance strategy, providing access to emergency funds when they are needed. However, to achieve the right financial goals you need to know that investment in savings is quite dangerous sometimes as well as the proper economical approach to the online savings account is an important thing to remember. Now, let’s discover the easiest way on how to open a savings account, and what is the best bank for a savings account.

How to open a high-interest savings account

A high-interest savings account is also known as high-yield. It works in the manner that you deposit money into a savings account, and a bank later pays out the interest on your balance. The main difference between the usual and high-yield savings account goes for the savings interest rates and APY (accompanying annual percentage) you will get is typically 10-25 times higher.

Once you have chosen the suitable account type and the bank which services you will use, it is time to start opening your savings account. You need to be aware of few things of a savings account interest and other financial features before account opening:

  1.     An interest rate and APY itself

No doubt, the first thing you would be willing to know is savings account interest and APY. With that knowledge, you can easily compare a few banks to choose the most profitable conditions for your savings account.

  1.     Requirements for fees

Fees can be an obstacle in the way of earning the interest of your savings account. So, check up whether your banking service charges a fee for minimum balance, customer service, maintenance, etc. to make the most felicitous decision.

  1.     Requirements for a minimum deposit

Consider how much money you want to deposit for a high-yield savings account. Keep in mind that some banks can require a minimum account balance that is necessary for accurate returns.

  1.     Access option

Make sure you will have access to ATM or branch banking once you have used an online service for opening a savings account – the method for withdrawing funds is an important thing to consider.

  1.     Financial app or mobile banking

Digital banking is a convenient and easy-to-use tool, especially if it comes to a savings account. Look through the reviews about certain banking apps or mobile banking to make sure it is good enough for you.

  1.     Banking service

Make sure your bank provides you with reliable customer support options. You will be able to ask questions about savings accounts using a suitable method – a live chat, by phone, etc.

Top reliable banks for savings accounts

  1.     SmartyPig by Sallie Mae – provides 0.70% APY with no monthly fees and minimum initial deposit
  2.     Affirm – offers 0.65% APY with no ATM card or fees
  3.     Axos Bank – offers 0.61% APY for high-yield savings accounts with no minimum ongoing balance