High yield savings accounts may be on your mind right now, as you watch the stock market float up and down late. It’s certainly understandable why you might want to find a home for your savings that is a little more stable than stocks or mutual funds and of course high yield is a little bit elusive currently. Right now, I wince whenever I look at my husband’s 401(k) statements. I continually have to remind myself that retirement is a long way off for us; the market has plenty of time to recover.
Unfortunately, with interest rates so incredibly low, traditional savings accounts aren’t exactly attractive options, either. ING savings accounts, for instance, are only earning 1.49% right now. Yikes! A low earnings rate is better than losing money, but I have to think that there is something better out there for our money.
Before you throw in the towel and give up on your savings accounts, you should take a look at high yield savings accounts. Available at many different banking institutions, high yield savings accounts are savings accounts that feature markedly higher interest rates than traditional savings accounts offer. Higher interest rates and the ability to get to your money with ease make these savings accounts increasingly popular.
There is a trade off, however, required to get those higher interest rates. High yield savings accounts often require a large initial deposit (several thousand dollars) and limit the number of account transactions per month. In addition, account owners are often required to maintain a relatively high account balance.
If these requirements don’t bother you, a high yield savings account may be the perfect investment vehicle for you. Now, you just need to find the right one. You can start by visiting a banker at your current bank. Your bank may already offer these types of accounts.
If you bank online or your bank doesn’t have a high yield savings account, you can also turn to the internet to find the right account. Bankrate.com features a pretty helpful rate comparison tool that may prove helpful. You can receive rate quotes for many different institutions by visiting one website. Always be sure, however, to confirm that rate before you open an account with your chosen bank.
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14 responses so far ↓
1 aa // Apr 4, 2009 at 11:27 am
Low yield saving accounts? Everybody has at least one.
Stocks are still cheap at this point because ordinary people like you haven’t bought more into it.
If you’re chicken, where are bonds? CD?
Duh!
2 Topics about Banking » High Yield Savings Accounts - An Alternative to Stocks and Bonds // Apr 4, 2009 at 11:33 am
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11 Cathy // Apr 28, 2009 at 11:03 am
Can anyone tell me what the best high yield savings account is right now?
12 Kyle // Apr 28, 2009 at 11:05 am
Does anyone have an info on the ING high yield savings accounts?
13 JJ // Apr 28, 2009 at 11:39 am
Without a doubt, my fave is FNBO Direct – with a current rate of 1.9% APR.
14 Jessie // Apr 28, 2009 at 11:42 am
I am surprised no one has mentioned Capital One’s high yield money market – 1.5% APR. I’ve been very happy with them.
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