How to Choose High Interest Savings Accounts

Investing in high interest savings accounts allow you to earn more on your balance. Plus, if you find a good rate on a certificate of deposit, you can lock in the rate for the entire term. But before searching for the highest interest savings accounts, it's important to have a few tips. Here's a guide to finding high interest savings accounts.

Difficulty: Moderate

Instructions

1. Consider checking out traditional savings accounts. If you need to access your savings account frequently, consider a regular savings account. These accounts offer attractive rates, but allow more flexibility.

2. 
    

   Check out traditional money market accounts. Money market accounts are available at financial institutions such as Bank of America, US Bank, Discover Bank and your local credit unions. These accounts feature low minimum deposits and don't typically have a penalty for withdrawing your funds.

3. Invest in high yield money market account. These high interest savings accounts feature excellent rates, and typically require a larger minimum deposit. If your deposit drops below the minimum, the financial institution may access a fee.

4. Invest for longer terms with certificates of deposits (CDS). Some of the highest interest savings accounts are certificates of deposits. The longer terms, typically 60 months, offer the most attractive interest rates. Plus, you'll lock in a high rate for the life of the CD.

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   Find high interest savings accounts at Bankrate.com. They allow you to compare the highest interest savings accounts across the nation. And if you prefer to deal with financial institutions in your local community, you can narrow your search by zip code.

Tips & Warnings

• Consider checking out credit unions. These financial institutions are often overlooked for offering high interest savings accounts. Credit unions are non-profit and insured by the NCUA.
• Don't forget to get a fee schedule. Make sure your high interest rate savings accounts aren't loaded with fees. Check for early withdrawal fees, monthly service fees, and excess withdrawal fees.