High yield savings accounts are a top choice for consumers who want to earn higher interest without taking large risks, but which one of these accounts should you choose? Many savings accounts offer an interest rate that may not even keep up with the rate of inflation but some high yield options offer the same FDIC insurance and a larger rate of interest.
There are some excellent choices for these accounts if you are willing to take the time to evaluate each account option to find one that is right for both your situation and banking goals. A few years ago a high interest rate would be 10% or more but today the rate is significantly lower. Typical savings accounts may only pay 0.10%, so even 0.75%-1% will be considered high interest in the current banking environment.
There are a number of high yield savings accounts to choose from, and some are a better choice than others. Discover Bank offers an online savings option that features a 1% interest rate as long as you maintain a $500 minimum balance. Discover is a well-known name that is trusted by consumers, and the higher yield is offered on the online account because this type of account has lower expenses and overhead. Ally Bank is another high yield option for savings account, and this bank also receives high marks from customers and offers a competitive interest rate. Ally Bank offers 0.89% and a minimum account balance does not apply.
ING Direct also offers a high yield savings account, and this name is known and well trusted in the investment and banking world. This account does not require any minimum balance and gives 0.85% interest on your money. EverBank also has a high interest option if you want an online savings account but the minimum account balance needed to get this interest rate may not be right for everyone. With EverBank you must maintain an account balance of at least $1,500 to get the high yield rate of 0.76%. FNBO Direct is another option if you are looking for high yield, and there is no balance needed to qualify for the rate offered. The savings account offered by FNBO Direct gives a rate of 0.70%.
Before you choose any high yield savings account there are some considerations you should examine. Any savings account should be FDIC insured, and while most banks and financial institutions are covered a few may not be. You also want to make sure that you can access your account balance if needed, and can add funds to the account quickly and easily. Some online accounts may be offered with no option for a physical location and this can mean electronically transferring funds or mailing in paper checks and money orders. Check out all of the features as well as any restrictions to make sure the account you choose will fit all of your banking and savings needs. Find out if your transactions are limited, and if there are any account set up or maintenance fees involved.