While there are a lot of different savings accounts out there, you likely won’t find a lot of options for turning them into a sound investment strategy. But getting a good return is important even with a savings account. So to find the best option for you, it’s essential to compare high interest savings account.
A standard savings account will give you, on average, 0.06% in interest. That means your account is not an investment vehicle, or at least, it’s not a very good one. On the other hand, looking at high-interest savings accounts shows the potential for interest as high as 1.25%, which means a much better return on your investment.
How do high-interest savings accounts give such different rates than a standard account? Well, that’s because these accounts offer fewer features than a standard account. For example, you’ll have only a few withdrawals a month (or even a year) before paying a fee. Some high-interest accounts may even have minimums to open the account.
When you compare high-interest savings accounts to standard savings accounts, you’ll need to look at more than just the rate that you can get for interest. You’ll also need to consider whether you need regular access to your money.
Compare High Interest Savings Account to a Regular Checking Account
Suppose you frequently transfer money back and forth to and from your savings account. A high-interest savings account may not be for you since it is all about ‘set it and forget it’ style investing. But for those who are diligent about transferring money into their savings account but not out, it might be a good choice.
High-interest savings accounts give you easy access to your money if you need it, making them better as an emergency account than, say, the stock market. And in the meantime, while the money is not required, they give you a higher interest rate than a standard savings account is going to do.
Of course, you don’t just want to compare high-interest savings accounts to standard accounts. You also want to compare them to each other. Then, you can find an account that maximizes the features you want with the rates you want.
High-interest accounts are like other accounts in one way. There are plenty of different types, interest rates, and other options available, and it’s up to you to find the one that checks all the boxes for you.
You can compare high interest savings account with CIT Bank to save your money more efficiently. See how CIT Bank can help you get the interest rates you’re looking for.