How to Compare Savings Interest Rates

Video Transcript

"Hi, this is Matt McKillen with Innovative Financial Group. The question posed to me today is how do you compare different savings interest rates. Well basically there's a lot of banks out there that want to earn your business, they'd like to have you as a client. One of the things that I've done in the past is when I'm looking to put some money away either in a savings account or maybe perhaps a CD, I'll pull my local newspaper out because most banks will advertise usually in the first section of the paper what they're paying on a savings account or in a CD. Now my experience also shows that the longer term CD for example that you walk in like if you are not allowed to touch the money for two years or three years, generally what happens is the bank will pay a much higher rate of interest. Usually with savings account, it's just a flat amount that's paid irregardless of the principal that you have in that savings account. So with that it's worth probably just calling a couple different banks that you see in the paper or that you're familiar with and just compare who has the best terms. My name is Matt McKillen, I'm with Innovative Financial Group."