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Searching for a place to stash your savings? The harder your money works for you, the better off you'll be. Learn How to Find the Best Savings Rates here.
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Searching for a place to stash your savings? The harder your money works for you, the better off you'll be. Learn How to Find the Best Savings Rates here.
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Introduction
- Remember when a high-yield savings account yielded 6 percent or more? How things change. These days a measly 2.0% is considered stratospheric. But at a time when some banks are paying less than 1%, we consumers have to take what we can get!
Following are tips to finding the best savings account rates:
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Step 1: Start with Research
- Before plunging your savings into just any institution, take a survey of what's available in terms of rates and account features:
- Look online. Sites such as bankrate.com, ratecatcher.com routinely publish articles and statistics on the best savings interest rates.
- Read periodicals. Money Magazine and Smart Money are good sources, for example. The Wall Street Journal and the business section of your local newspaper are others.
- Watch TV. Cable news and financial news outlets can also provide good data.
Step 2: Step Off the Beaten Path
- [[Image:Savings_DO_20090505.jpg|frame|none|right| (Creative Commons photo by
- P.A.M)]]
- Check out online banks. Unlike brick-and-mortar banks, online institutions have no overhead, so they can afford to offer higher interest rates. Sending your savings to an entity, knowing you cannot walk in and withdraw it later may make you queasy. But higher rates can help to quell the nausea pretty quickly.
- Look into smaller institutions. Recent large-bank failures may make you question this suggestion. After all, when global banks are going under, how can a small institution be a good place to stash your cash? But you'd be surprised at the statistics. Plenty of smaller banks have solid credit, solid reputations, and best of all, higher savings interest rates. So don't rule them out.
- Consider a money market account. Though money market accounts may come with more restrictions -- limited monthly withdrawals, mandatory maintenance of a checking or other account -- their good interest rates make them worth investigating. If the restrictions won't crimp your financial style, look toward taking advantage of this option.
Step 3: Review Reputation
- Once you've identified a few key savings candidates, do a more thorough examination. After all, you can't be too careful with your money.
- Find out how well the bank rates in comparison to others. Bankrate.com, Bauer Financial, and TheStreet.com publish bank ratings. Though the FDIC insures your savings up to a certain dollar amount, a solid bank is preferable to a shaky one.
- Get information on the bank's customer service reputation. Comforting though it may be to know your money is earning good money, poor consumer practices are a drag. Check websites, even ask your friends and neighbors. Getting involved with a bank that treats its customers badly is a headache.
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