When looking for the highest apr savings account, most people will just head down to their local bank and sit down with their friendly neighborhood banker. But is that really the best way to go? Can you really get the best rate right in your own backyard? In many cases the answer would be ‘no’. The truth is that when it comes to providing great rates, you are almost always better off going online.
Online banks can offer a lot of the same things off line banks offer. A good online bank will have great customer service, sometimes it’s even better than the off line bank since it’s available all day every day 365 days a year.
Online banks can also offer you a high level of security. Many of them are FDIC insured. As a matter of fact if the bank you are looking at isn’t FDIC insured, keep looking. Don’t pass up on this extra layer of protection for your money.
The one big difference you will see with an online bank is the fact that they tend to offer the highest apr savings account versus their off line competitors. If you are comparing one regular savings account to another, the online bank will almost always pay a higher interest rate.
It just makes sense really. If you think about the enormous amount of money your local bank has paid to build their beautiful building, hire staff, pay for utilities, etc. That’s a lot of overhead. An online bank by comparison needs fewer employees, and a website (obviously that’s an oversimplification but you get the point) they save money and that means they can afford to pay their customers more in interest.
Make sure that before you make your final choice of bank that you know exactly what the fine print says. It’s important to know how much money you need to open the account as well as the minimum balance amount needed. Both of these things will vary from one bank to another so make this part of your screening process.
If you don’t need to have access to your money for a while and you really want to get a high interest rate you should probably take a look at opening a certificate of deposit (CD). These will pay more than a regular savings account, yet they are still very safe. This can offer a great mix of security and high interest rates.
The one downside to opening a CD is that your money isn’t very liquid. You will lose a lot of your interest if you try to get your money out before the term is up. There are several options for the length of term you can get, but make sure that you plan on just leaving your money in until the term is over.
It will just take a small investment of your time to find a great savings account so your money can be safe and working hard for you. After all, don’t you want your money to work as hard for you as you did for it? Finding the highest apr savings account is easy, with just a few clicks of the mouse your money can be put to work for you.