Savings Accounts
Accounts that help its holder to preserve their cash and feel confident about his/her money while giving a small amount of interest on it.
Saving Account Options: (1)
You will use saving accounts for free if you wisely understand the terms and conditions for the Annual percentage yield of earning maximum interest rate to avoid the charges and save more money.
Basic Saving Account:
This is the traditional methodology of opening an account in a nearby bank and hold your money into it and earn the simplest interest of about 0.1℅ on your savings, and easily withdraw it at time of need. But this account imposes some restrictions on their users in term of withdrawal and transfers the funds only six times a year. But if you are a normal user you will not face any problem with using these basic saving accounts.
Online Saving Accounts:
Due to the enhancement in the technology and fast-growing economy of the world, no one has time to physically visit the bank and deposit or collect money, they prefer to use the online saving accounts that operate through the cell phones and within seconds they continue sharing funds and paying routine life payments like bill payments, online shopping. The plus benefit of this account includes this offers you a high-interest rate earning option, along with a low or no monthly fee, and has no requirement of maintaining the cash in the account.
An online saving account gives you three options to enjoy the facilities according to the customer’s need of the hour for example if you know about online banking, then an online saving account serves you as self-service in which you don’t need to consult the financial advisor, you can handle your account easily and if you need any help you can just call to the customer service centre. Another option of having an online saving account is that you can use the linked account which means if you already have an existing basic bank account and you want to get services online as well, than you can link your account with an older one. The other amazing benefit of an online saving account is that you can spend money by paying through your debit card for shopping and utility bill payments.
Money Market Accounts (MMAs):
This account has the reputation of high yield interest rate account, If anyone wants more interest on their savings then they must look up the services of this account in which they will get so many options like immediate withdrawals of money when needed, they can shop through their debit card, there can write checks as well.
Certificates of Deposits (CDs):
Generally, it is for those people who want to save money for a long period for example for 6 months or one year but the condition is imposed by the bank not to withdraw your money in between this period, if you do so, then you face the penalty and earn less interest as well but if you follow the conditions then you will be awarded high-interest rate that will automatically raise your money after that period. Certificate of deposits is also on the list for giving high yield interest to their customers.
Checking Accounts:
It enables you to get quick cash with easy accessibility, the normal account offers a very low interest rate of 0.01℅ equals to zero, but checking accounts gives real value to your account in term of reliability and profit, if you hold the saving plus checking account of the same bank like Huntington, then you will receive the interest at a rate of 0.15℅.
Rewards checking account is the other potential option to earn more on your saving on some conditions such as you have to perform a certain number of transactions in a month. AXOS bank similarly pays you 0.4166℅ interest if you deposit at least $1000, in addition to it if you pay through debit card 10 times in a month you will get more 0.4166℅ and following these 10, if you add more than 5 transactions through the debit card you will earn similar rate of 0.4166℅ that collectively reach APR of 1.25℅ in a month. The above criteria of checking accounts reflect the high yield interest giving ratios.
Goal-Oriented Saving Accounts:
This is a very unique option that financial institutions give to their customers by giving them a handsome amount of interest in achieving their goals like saving money for buying a new vehicle, going for a vacation with family, planning to build your home, etc. This account targets their customer psychologically because everyone has dreams and goals in their minds that they want to fulfil in their lives. In this regard, the bank offers in such ways, as if the customer deposits $100 every month the bank will give him an interest rate of about 1.55℅. This will attract the customer to avail these chances to earn big and get their dreams done.
High yield Saving Accounts: (2)
These types of saving accounts give their customers a chance of around 20-25% high interest as compared to the national or traditional accounts for example if you have $5000 in your account so according to a national average of 0.10 ℅ you will receive only $5 at the end of the period while on the other hand if you hold that amount in high yield saving account that gives 2℅ then you will earn $100 after one year.
The high yield saving accounts include Checking accounts, Market money Accounts, and goal-oriented accounts. That has some tough policies to maintain but in the end, it is helpful if you follow these instructions.
Best No-Fee Savings Accounts April 2021: (3)
According to the recent studies and evaluations, banks that offer 0℅ initial deposit and gives high rates of interest on using saving accounts are as follow:
- Varo Bank
- Sallie Mae Bank
- Capital one 360
- American Express National Bank
- Discover Bank
References:
- https://www.thebalance.com/types-of-savings-accounts-315775
- https://www.investopedia.com/articles/pf/09/high-yield-savings-account.asp
- https://www.forbes.com/advisor/banking/best-no-fee-savings-accounts/
