How Do Savings Interest Rates Work?

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Savings account interest rates allow the consumer to earn interest on money kept in a bank savings account. Discover how banks compete over consumers using savings interest rates with information from a registered financial consultant in this free video on savings accounts.

Part of the Video Series: Money Management
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Video Transcript

This is financial adviser Patrick Munro talking about, "How do savings interest rates work?" Savings institutions that will pay you a rate of interest on your money, pay you an interest rate on that money and it is a very competitive environment between banks. It's important to make sure that you as the saver is getting the most for your savings and one of the best ways to do that is to go on to the web to bankrate dot com. And you can actually look at the top rates that are out there for savings. However you may want to also contact your local bank because of the convenience that that bank would afford you. And a savings account is just one tool that will open the door to other vehicles that the bank could give you such as auto loans, retail loans, mortgages as well. So don't get caught up on just the high rate of interest that you can get from a far and away bank. Always develop a relationship with your primary banker. This is Patrick Munro talking about how interest rates work.

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