For those consumers with money left over each month after the bills are paid, it’s always a smart idea to put it into a high-yield savings account or similar money-making tool. As opposed to simply leaving excess income in your low-interest checking account, putting it in a high-yield savings account will bring you a better dividend, while still keeping your money close at hand.
In general, the more financial risk you take, the more you may be rewarded, or punished. A high-interest savings account offers an easy-access middle ground for your money, with no risk but with a better reward than a checking account gives you. Though your current bank probably offers savings accounts, it can pay to do some research. There are several banking institutions–even online ones–that can offer you quality savings account rates.
In general, banks like to see certain criteria met before offering customers a high-yield savings account. Among these factors are a significant initial deposit, maintenance of a significant balance, low activity with the account, and sometimes other accounts with the bank. For this reason, it doesn’t hurt to ask your current bank if they can offer you a savings account with a higher than average APY. If not, your research on other institutions will pay off. We have done some of the leg work for you and compared different banks.
As interest rates rise, most consumers shudder at the thought of paying more to borrow money. Keep in mind, however, that this means banks will also have to pay you more in order to keep your money in their vaults. Smart consumers will always benefit in higher dividends.
Read about a pre-paid debit card linked to a 5% APY Account.