When trying to choose a high-yield savings account, you should look at the amount of interest that is paid, whether the account is insured by the FDIC, and what types of fees are associated with the account. You should also determine how easy it is to access your money. Looking at other factors such as the minimum deposit and the number of deposit methods is also important.
One of the first things you should compare is the interest rate paid by the savings account. In most cases, the interest is not going to be substantial with a savings account, but every little bit can be helpful. Try to find a high-yield savings account that pays a rate that is higher than all the rest. You should notice that the account is going to pay a higher rate for having larger amounts of money deposited. Determine how much money you are going to deposit and then compare that level of deposit between the different accounts.
Another factor you should look at is whether the account is insured by the FDIC. If you are working with a bank who is not insured by the FDIC, you are going to be taking on a large risk. The FDIC insures accounts up to $100,000 if the bank goes out of business. If the bank goes under, the FDIC will pay you back up to that amount. This makes FDIC insurance a very critical aspect of any savings account.
When looking at a high-yield savings account, you also want to be aware of the fee structure involved. In many cases, you should be able to find a high-yield savings account that does not have any fees at all. In some cases, you might have to pay an account maintenance fee or some other type of charge. Try to stick with accounts that do not have any fees associated with them.
Another factor that should be considered is the amount of money that has to be deposited into the account. Some banks require you to make a minimum deposit while others allow you to deposit any amount you want. Find a bank that has policies that will match up with your savings needs.
You should also look for a bank that is convenient to work with. For example, if it has multiple ways for you to deposit into your high-yield savings account, this can be convenient. Being able to transfer money from another bank account can be very beneficial as well.
