There are so many ways to save money securely, and one of the best ways is to do it by putting money in an online bank. Why an online bank? Because they can afford to pay out a higher APY than the traditional bank. Imagine getting as high as 2% APY, depending on how much you deposit and maintain. The top bank savings rates really help you to save and raise the money you need for making a large purchase in the future, or simply just prepare for retirement.
Decide if you’d rather put the money in an actual savings account or a CD (certificate of deposit). With the latter, you could potentially earn more, but you’ll be locking the money up for a specified amount of time and won’t have as much freedom with regards to accessing it.
Don’t just click on the very first ad you see for “top bank savings rates” and go with whatever is #1. First, check that each financial institution you are interested in is backed by the FDIC. This way, your won’t have to ever worry about losses.
Top Bank Savings Rates Can Change
Do the bank interest rates ever change? Obviously they do since they are closely correlated with the federal funds rate. This means that they are variable and can actually change regularly throughout the year. That said, some online banks really do offer a fixed guaranteed rate for an introductory period as long as you open an account that meets all of the relevant requirements.
What is an “introductory period”? Essentially it means the period from the starting date of the account opening through the first “evaluation day”. The first “evaluation day” will be set on a date specified by whichever bank you choose. The evaluation period varies as well, so be sure and read over the terms and definitions provided on each bank’s website so you’ll know exactly what to expect.
Also take note of tiers or levels. You might not even be able to qualify for the top bank savings rates if you don’t have very much to start an account with. Some banks require several thousands of dollars to get 1.5% or above. if you don’t meet the minimum requirements for a higher tier, then perhaps look into a savings builder type of account or a CD.
As of right now, CIT Bank is a good place to start your research into top bank savings rates. This bank offers many great services and products and its customer support is very impressive.