Most people would prefer if the money they save can earn some interest without having to worry about losing any money. While mutual funds and stock market accounts can have higher interest rates, they also have a higher risk than some other types of accounts for saving money. Taking a few steps may make it easier to find better Savings Interest Rates.
Consider Money Market Accounts
These accounts can be a bit more flexible than a typical savings account, as it’s sometimes possible to write checks from money market accounts, although the transactions per month tend to be limited. Check to see whether the interest rate is higher than with a savings account.
Compare Rates at Multiple Financial Institutions
Before opening a savings account, check out the Savings Interest Rates at a number of other institutions, such as Pearl Hawaii Federal Credit Union and any other relatively convenient local options. Interest rates do vary between banks, so checking these regularly and moving savings to the bank with the best deal can help a person earn interest faster.
Consider Online Banks
Money that a person doesn’t necessarily need instant access to may be better off in an online-only bank, as these banks don’t have to deal with the cost of having branches open and often offer higher interest rates. They are a bit less convenient, but the additional interest can make this worth it for some people who don’t mind not being able to go to a physical bank location.
Maintain Higher Balances
Those who can afford to maintain higher balances can qualify for checking and savings accounts that pay higher rates of interest, although there may be other conditions attached to these accounts, such as needed to have money direct deposited or only using a set number of transactions per month.
Consider CDs or Savings Bonds
Another way to get a higher interest rate is to purchase certificates of deposit or savings bonds. These will tie up your money, however, so only use money that won’t be needed for the length of the CD or bond. Cashing out early can involve a large penalty, limiting any benefits from using these methods to save money.
