How to Open a Savings Account With High Interest

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By Patti Winters
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Photo Courtesy of Rich Seattle

In today's economy, opening an FDIC insured high interest rate savings account is the safest way to save money for the short term. The resources below provide a good step to your research, selection, and opening the savings account for you.

Difficulty: Easy

Instructions

Things You'll Need:

Computer
Resource links (below)

Step 1

TAKE TIME TO RESEARCH

BankRate.com (link below in the resource links) is one of the best places to find the current interest rates for savings accounts and CDs. As these interest rates frequently change, it is good to check back every 3 - 6 months to see if you can find a better deal. Typically, the online savings accounts to have a higher interest rate, so don't count them out. I have included links to HSBC Direct and ING Direct (two well known online savings accounts) in the additional resources section.
Step 2

OPEN YOUR ACCOUNT

Once you have chosen the account with the highest interest rate, that is also FDIC insured, follow the instructions by the bank or institution to open your new savings account.
Step 3

CONTINUE TO ADD

Each day, week, or month try to add more to your account to keep increasing your balance. Any small amount you can spare will add up in the long run.

Tips & Warnings

An additional benefit for online savings is that your funds feel farther away, and you are less likely to dip into this savings.
For motivation to save more and more, watch how your interest adds up on each monthly statement. Any interest you can make, is money you didn't have to work for (it's money working for you)!
While researching your new account, make sure it is FDIC insured for your safety. A link to additional information about FDIC insured accounts can be found in the additional resources section below.

Resources