High yield savings is a type of savings account that pays a higher rate of interest than regular accounts. Consumers should seek out financial institutions that compound interest daily in order to obtain the highest annual percentage yield. Many banks and credit unions compound interest quarterly, so it is smart to shop around.
The Internet is a good place to compare high yield savings accounts. One trusted source is BankRate.com; a website that provides banking information, savings calculators and an overview of each type of high interest savings account.
Visitors can locate deposit requirements for opening new accounts, compare interest rates, determine minimum balance requirements, and monthly service fee amounts.
Another good source for high yield savings comparison is ConsumerSearch.com. This website is presented by About.com; a division of the New York Times conglomerate. Consumer Search provides an abundance of information about multiple savings account providers and helps visitors easily compare APY percentages.
Individuals worried about online banking security can locate brick-and-mortar financial institutions via ConsumerSearch.com. Doing so can help them be prepared when they are ready to open a high yield savings account in person. Individuals who prefer to conduct banking transactions online can locate web addresses for both traditional and internet-only banks.
Regardless of how you bank, it is important to deposit funds with FDIC-insured financial institutions. Congress created the Federal Deposit Insurance Corporation to protect consumer funds in the event of bank failures.
FDIC provides insurance of up to $250,000 per insured bank. Insured accounts include money market, certificates of deposit (CDs), checking and savings. Considering the number of recent bank failures, it is crucial to deposit savings funds with financial institutions insured by FDIC.
Credit unions are not protected under FDIC. Instead, deposited funds are insured by the National Credit Union Share Insurance Fund. NCUSIF is managed by the National Credit Union Association and insures funds deposited in checking or savings accounts up to $100,000, and up to $250,000 for retirement savings.
Consumers that do not have credit cards or are trying to get out of debt should consider looking into SmartyPig. In partnership with West Bank, this online savings plan helps consumers save money for big ticket purchases.
Last year, SmartyPig was featured in several publications including American Banking News and Forbes magazine. A unique feature of SmartyPig is depositors can establish savings goals and contribute money to fund various projects. Depositors can setup a savings account for vacation, another for household appliance purchases, and another for new car purchases.
Another unique feature of SmartyPig is family and friends can deposit money into established savings accounts to help loved ones reach their financial goals. Details of this high yield savings program are presented at SmartyPig.com.
Regardless of your savings goals, always review bank ratings at BankRate.com prior to opening an account. Look for financial institutions with at least a 3-star rating. Check deposit requirements, monthly fees, and rate of interest offered on high yield savings accounts. Many banks and credit unions provide a higher interest rate when accounts are opened online. Others include hidden fees such as charging for ATM transactions or receiving paper bank statements.