Highest Interest Online Savings Account

The crashing economy of late has pummeled the savings rate as well. You may have already noticed your already dismal savings account rate drop even more. And you didn’t think that would be possible. Since inflation typically hovers several times higher than the savings rate, your money is actually losing value every second.

If you want to lessen the value loss of your money, you should consider putting your money in the highest interest online savings account. These accounts usually pay much more than a regular savings account. Sometimes has high as 8 times the national average interest rate.

There is not too much difference between the highest interest online savings account and a regular savings account. The main difference lies in the fact that the highest interest online savings account is usually operated all online. There is no physical banking center that you go to do business.

In using a high interest online savings account, all your transactions are done online. By doing this, the bank saves a lot of money by not having to pay expenses from operating a store. The money saved is then passed on to you in the form of higher interest rates.

To compare and find the highest interest online savings accounts, use a personal finance website like bankrate to help you. These sites let you compare according to interest rates, fees, minimum deposits, etc.

If you want to find the highest interest online savings account then just sort the list by highest APY. Watch out for other fees that the banks might charge though. These fees could reduce your potential earnings.

Check out whether or not the highest interest online savings account is FDIC insured. If it is not insured and you deposit your money in the account, you could one day lose all your money if the bank decided to close.

You can easily apply for the highest interest online savings account by going to the bank's website and filling out their application. Then you can transfer money from your other savings account into the highest interest online savings account. Your money will start accruing interest from then on.