High-Yield Savings Account Comparison

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Finding a high-yield savings account requires shopping around from bank to brokerage firm to find the best savings account opportunity. Read the fine print to know the restrictions of a high-yield savings account with information from a portfolio manager in this free video on finance.

Part of the Video Series: Credits, Stocks & Pension
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Video Transcript

So what does high yield savings really mean? It's all marketing stuff! It really doesn't mean a thing. What you have to do is call or shop each bank or brokerage firm to determine the rates of interest that you're going to give...that you're going to get from them on deposits that you've left with them. Now, what's a really efficient way to shop for rates because the spreads are huge? Sometimes you only get one percent and from what I can see online right now, in some cases, you get seven. There are plenty of websites available through your own bank or a brokerage firm or even online just Googling that will show you a number of different banks and rates that they pay. Be careful, though, because you need to verify directly with that bank what the rate is after you've seen it online, and then look at all the disclaimer data to be sure that that type of account is appropriate for you. They may lock up your money for long periods of time or provide penalties for early withdrawal. So be really careful what you do with your money. There is no substitution for homework here. Be careful. I'm Roger Groh of Groh Asset Management, and thank you very much for spending time with me.


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