Putting your money in a high yield online savings is a great way to earn very good interest on your money. Most traditional savings accounts these days give you 0.1% interest or something miniscule. Inflation hovers at around 4% or more, so by leaving your money in these traditional savings account, you are actually losing money. This is where putting your money high yield online savings comes into play. High yield online savings usually offer rates anywhere from 1% all the way up to 5 or 6%.
Finding a High Yield Online Savings
To find high yield online savings, go to any personal finance website like bankrate and there will be an option there for you to find and compare several high yield online savings. Once you have found their list of high yield online savings accounts, just sort the list using the APY as the criteria. Be careful about fees and other charges some banks might do. Even if the bank provides a high yield online savings but charges you all sorts of fees, then you wouldn't be making as much as the rate suggests.
Investigage the High Yield Online Savings
Before you sign up for a high yield online savings, be sure you check out on FDIC that the bank is insured. If it's not, then stay away from that bank, because if they lost all your money, then you wouldn't get a dime back. The high yield online savings bank should have a FDIC member number. Just use that number and check on FDIC.
High Yield Online Savings Application Process
To fill out the application for a high yield online savings, go to the bank's website and sign up for the account. You'll have to provide your social security number and other private information. Once you're approved and your account is open, you'll have to establish a funding account. This will be the account that you're currently using such as your checking account.
Tuesday, June 9, 2009
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