If you are looking in indentifying the best bank or financial institution that proposes high interest savings account you should not only pay attention to the interest rates, there are many other details that should be taken into consideration. Let me shortly refer to them. Remember that there are many other features which make a bank a good institution worth your attention.

So what do you look for, as a customer, when searching for a bank that would have high interest savings account? And even though there are people that look only to find a famous name in order to trust their financial means and there are people who pay attention exclusively to the highest interest savings account rates possible, both scenarios are not the best option. As stated above there some extra features which need to be taken into account.

First of all you should look at the features that the bank proposes to you and then decide if you want to become a customer or not. Of course the name matters, and usually a solid bank name brings along good reputation and expertise. One of the most important things is that the bank should be stable and reliable. And though, usually the savings accounts are backed up by the government it is wiser to find a bank that is stable.

Then pay attention to the customer services that the bank has. Believe it is very important to know that you can call the customer service 24 hours a day and that you will get actual assistance. Be sure that they can help you when you have troubles but also in situations when some things are not clear to you and you need merely explanation and guidance.

Nowadays, almost all the banks have online banking service. This bank service is very useful and important. In case you have a bank account you will be able to access it whenever you wish moreover, wherever you are. You will need just a computer and internet connection. Make sure the usability of the online bank service is good and that the account is easy to access.

But of course the main incentive that will determine your decision in choosing a bank and setting a high interest savings account is the savings accounts rates. However, do not forget to pay attention to the elements listed above. It will make a difference.

Well, first of all the idea of starting planning for tomorrow by opening a high interest savings account is not that bad per se. Everybody needs extra financial means to cover always existing needs. Either one is planning a dream vacation, or needs funds for education, or there is a need to renovate or build a house a high interest savings account can be the ticket for all these.

There are multiple choices on the relevant market and a lot of proposals. Before one decides on a certain option there are several considerations to be taken into account. First, of all look at the features that a high interest savings account has. Secondly, pay attention to the annual percentage yield. In this sense, check the interest rates. There are high interest savings accounts with fixed rates and there are accounts with fluctuating rates. The advantage of the fixed rates is that they are usually higher but come with some restrictions, as for example, the interdiction to withdraw the money for a certain period of time. Also make sure that the rates are accurate as of the day you open your account and that the interest rates are subject or not to change before or after the high interest saving account was opened.

Another important element is the requirement regarding the minimum balance to open a saving account. This requirement may vary. It usually depends on the product a bank or a financial institution is proposing. Thus, it can be very low or high.

Also some banks have a monthly maintenance fee. The fee is automatically withdrawn from the high interest savings account. However, the majority of banks guarantee the maintenance of the account for free.

It is very helpful if the bank proposes the possibility to open the account online. Why open a high interest savings account online? The answer is simple. Remember first of all that this is an easy way, the easiest actually, and it is also safe and reliable. Usually, the online application is quite simple, understandable and there is a guide that will assist you step by step during the whole process. All in all, in order to open a high interest savings account online one needs 10 minutes. If there are some problems or issues there is always the possibility to call the bank for assistance. In case you need more time to do it there is usually the option according to which one can save the application and return to it later. Once the application is submitted it takes up to 24 hours for the bank to review the application and open an account accordingly.

Nowadays interest rates that many online banks offer on their high interest savings accounts is quite low, but still there are number of banks that even today in the post-crisis period offer more or less decent interest rates.

There are few things that people seek in high interest savings account: safety, security, convenience and high interest. To find the right savings account for you, you need to make a small research and choose one for you. To do this, you need take into consideration some criteria:

Liquidity and Convenience: you need find an online bank that provides its clients with a online banking website with easy and convenient interface. You must not be an expert to use the website, so it must be as simple and as understandable as possible. Transferring money from one account to another, opening and closing an account must be easy – done by one click. In addition, the website must be secure (encrypted);

Safety, FDIC Insured: the good news is that high interest savings account is insured by Federal Deposit Insurance Commission (FDIC). Deposits up to $250,000 are insured by FDIC and this makes high interest savings accounts highly secure and safe. But remember to check whether the bank you are going to have business is covered by FDIC network;

High Interest, High Annual Percentage Yield: high interest savings account pays higher interest rate than normal savings accounts do. Online banks manage to pay higher interest rate to the depositors, because unlike traditional banking institutions they manage to cut costs associated with holding front office personnel and running service centers. This allows online banks offering high interest rates. Once you choose a particular online bank or a particular high interest savings account, you need to check what interest rate it offers;

Fees and other costs: different online banks have different fees and other costs associated with transactions on high interest savings account, so you need to check fees that a bank offer carefully;

In the United States of America Annual Percentage Interest (APY) for high interest savings account range from 3% to 3.5%. Under the conditions of global financial crisis one might be quite content with this rate, since many other types of investment opportunities offer much lower interest these days, especially taking into consideration negative returns of stock market. However in global context in the United States individuals receive one of the lowest annual percentage interest in the world. For instance, in Australia you can earn from 7% to 8% on high interest savings account that is organized and operated exactly in the same way as it is in United States. Similar situation is in other countries Germany offers around 5% APY, France – 7%, India – 10%, Italy – 4.75%, United Kingdom – 5%. Besides in many developing countries annual percentage interest for high interest savings accounts is 3-4 times higher than in the United States of America.

As you see interest rates differ across the countries substantially. Such a big difference is due to different inflation rates in different counties, different interest rate policies of central banks/monetary authorities and different country specific risks applicable in these countries.

The question is, whether you as a United States resident can get high interest savings account in some other country? In some cases you can, but in some countries banks provide such accounts only to residents; therefore they require certain confirmation of local residence from their new clients. In such cases, foreigners can still benefit from other country’s high interest rate indirectly through foreign bonds, but the problem is that bonds are different types of investment vehicles than high interest savings accounts and they do not have most of the benefits that savings accounts have. For instance, high interest savings accounts are highly liquid; you have a possibility to transfer the money from the savings account to checking account in minutes and withdraw it from ATM. Overseas bonds are not as liquid as savings accounts, you need some time and efforts to convert it into money. Besides savings accounts have very convenient online access that makes their usage very easy, while overseas bonds do not have such option.

Although annual percentage interest is high for overseas high interest savings account, it is subject to much paperwork and therefore does not worth dealing with it for small amounts like below $50,000. For larger sums overseas savings accounts offer much higher interests than local (United States) savings accounts and it may be worth dealing with it

The feasibility of keeping money at savings account: nowadays storing money at home or in the office is associated with potential risk of getting robbed. Besides keeping cash under such conditions is not financially feasible, since you do not earn any interest on it; therefore it would be illogical to keep it in the shoebox or under the mattress.

Savings account provides some benefits that many people around the world consider to be highly valuable.

First of all while keeping money at savings account, it will be less likely that you will spend it; therefore savings account helps you to do what it is designed for: to help you to save.

Secondly, high interest savings account is highly secure, since money deposited to such accounts is insured (up to $250,000) by Federal Deposit Insurance Commission. It is noteworthy that a bank providing savings account must be member of FDIC.

Thirdly, you receive interest income on your account. Interest rates change from bank to bank, but it is always possible to find a bank offering favorable interest rate. So savings account allows you not only save, but also earn money on your savings especially if a banking institution uses compounded interest rate.

Earning interest on your savings is extremely important, because inflation over time diminishes purchasing power of your money holdings. This negative effect of inflation is offset by interest income generated from savings account. Otherwise you would be able to buy fewer goods and services with your money tomorrow, than you can buy today.

Starting saving effectively needs certain type of approach. A good approach would be if you started “paying yourself first”. By this we mean that as you get your salary you should transfer funds to you savings account before covering other expenses or spending money for entertainment. Of course you must make sure that you have enough funds to pay your bills, for entertainment and for having fun. It makes saving much easier, because you make prediction (build up a budget for the coming period) about your spending for the coming period, but the money aside and the rest transfer to savings account. In this way you have better chances to overcome the temptation of spending money. Saving may solve many of your problems. You may even fund large part of your expenses by interest income.

Nowadays it is very hard to find savings instruments with decent interest rate and attractive conditions, since FED interest rates decreased almost to 0%. Funds became easily accessible and at very low interest rate, so banks and other financial institutions are quite unwilling to provide high interest rates for accepting savings. For normal savings accounts rates are usually around 0.1%. Only high interest savings account that is provided by online banks can offer attractive interest rates.

High interest savings accounts are provided by online banks. Online banks are those banking institutions that do not have physical office and conducts its operations online through its website. This allows an online bank to cut costs that are associated with keeping the staff, renting premises, maintenance and many other. Additional funds that are freed up are used for offering considerably higher interest rate than traditional banking institutions can offer. This makes high interest savings account particularly attractive for money savers.

High interest savings account has many other advantages. For instance, online banks provide very convenient website for their clients. Such websites allow bank clients to interact with the bank without physical interaction with the bank employees. Clients can open new accounts, close existing ones, transfer funds to and from high interest savings accounts. Also check balance, verify transfers and many other operations.

People are often unsure whether it is a good idea or not to trust money to “some website that even does not have an office”. This impression about high interest savings account is quite ungrounded. Such savings accounts are insured by Federal Deposit Insurance Commission (FDIC) meaning that if an online bank fails, savers money won’t be lost, Federal government will reimburse all the loses that accounts holder may bear. Just remember that high interest savings accounts are insured by FDIC up to $250,000.

As we already mentioned above nowadays decent interest rate became quite rare, due to expansionary policy of the Federal Reserve, however still there are some online banks that provide relatively high interest rates:

Hudson City Bank
APY: 2.8%
Deposit Size: $1,000 and up

SmartyPig Savings Account
APY: 2.05%
Deposit Size: $0 and up

Discover Bank
APY: 3.7%
Deposit Size: $2,500 and up

BankOn Savings Account
APY: 2.05%
Deposit Size: $0 and up

PenFed Credit Union
APY: 3.75%
Deposit Size: $1,000

Alliant Credit Union Savings Account
APY: 2%
Deposit Size: $5 and up

Melrose Credit Union
APY: 3.65%
Deposit Size: $5,000 and up

First Bank & Trust Checking Account
APY: 4.01%
Deposit Size: $0 and up

Sierra Bank Checking Account
APY: 4.09%
Deposit Size: $50 and up

Coulee Bank Checking Account
APY: 4.04%
Deposit Size: $0 and up

If you are looking for a high interest savings account first you should do a little bit of research. You should see which of the banks proposes the highest rate of interest. Check the rates for high interest savings accounts carefully. You have to figure it out if the advertised rates of interest on the savings account are real or artificial. Some banks add an introductory bonus that is why the interest rates seem to be higher at first sight. However, this is not bad in itself just keep in mind that if you decide to choose a savings account accompanied by a bonus when it runs make sure that your open a new high interest savings account. That will give you the possibility to increase your savings.

Another important things is to study attentively all the details of the high interest savings account. Many times it happens that the interest rates are high because the account is accompanied by multiple retractions. These restrictions usually refer to the number of times you can actually take money, which might be quite limited. Another restriction could be related to the fact that when you take money from your savings account you loose your interest for a certain period of time. So be attentive to all of these details. Remember that a good high interest savings account that gives you easy access to your money.

Another thing, make sure that you can access online your high interest savings account. This will give you the possibility to have easy access to your savings account, to manage it and supervise. Overall, using an internet bank in order to access your account represents a comfortable way to manage it also because it generally has fewer restrictions. Moreover, you will be able to make online transfers from your account. On this point one hint, make sure that the transfers are made for free. Ask about all online operations. What can you do and if this is for free.

Also make sure that there are not too many difficulties in opening a high interest savings account. Unfortunately, some banks offer high interest rates only to certain clients. These banks either require that the initial deposit should consist of a large amount of money or that the client would keep a high balance over a period of time or the banks limit the range of transactions that can be made. On the one hand this is understandable, because the banks tend to offer high interest savings account to stable and valued clients.

You have to keep in mind that the majority of the savings account rates are variable. This means that the savings account rate can change. That is why it is very important that you continuously monitor your savings account rate and if it goes down then switch. A savings account calculator can greatly help you to make calculations over your future earnings.

There are many banks and financial institutions that propose a fixed  savings account rate. There are very good rates for one, two or even for three years.

However, sometimes big fixed savings account rates may come with restrictions, as for example you cannot withdraw your money out from your account for a period of time. For many people this is highly uncomfortable. That is why this kind of savings account may satisfy those people that are ready to lock their financial means for a long period. But for those who are ready to lock their money for a period of time make sure that it is not too long as there are too many risks that comes with that choice. The financial security of the bank can change and then it will be hard to get your money back or you will find some higher rates and you won’t be able to switch.

However, locking your money for a long period at the same time can be very beneficial. The general rule usually in such situations dictates that if you save for a little bit longer the rates that are available can change by growing up. So if you decide to lock up your money for a longer time the chances are bigger that the rates will increase and your financial means will stay untouched. So, all in all you will be able to save more. At the end of the day it is possible to sacrifice access to your financial means in return to big rates.

You also have to consider the fact that the financial market is also full of good proposals in relation to savings accounts. For example, some banks propose fixed rates but for a short period of time. This period is usually established for 6 months or 9 months.

Normally a non-fixed savings account has also very good rates. But you have to attentively monitor your account‘s rates and if the rates go down just switch to another one.

You have to remember that the way in which the rate of return is calculated may greatly affect your savings. You will ask how can the way in which return is calculated can have an impact on your actual savings? Well, let me put it simple, the more frequently return is added to your savings account the higher return you earn. This is why it is important when choosing a savings account calculator to pay attention to the elements. Also an important thing is how the savings account calculator operates.

Each savings account calculator operates with at least the following elements: the initial investment amount of money, interest rates and the period of time planned for the particular savings. The initial amount of financial means reflects the money you plan to deposit on the savings account. The interest rate is the rate envisaged for your particular type of investment. The interest rates can radically differ. Thus, the de facto rate of return on the large scale depends on the kind of investments instruments you decide to opt for. As a rule the interest rates depend on the period of time of the savings. Usually for long-term investments the return rate is much higher. At the same time, for long-term savings the rate of return may change over time. If you get initially one interest rate it can subsequently change to another one. Be careful to find out if the interest rate is static for the whole period of your investment or is flexible. If it is flexible make sure you find out the precise rate for all periods of time, when it changes and what are the conditions for change.

It is also important to note that some financial institutions compound the interest rate. It is important that you check this with the financial institution, where you plan to open a savings account. When a interest rate is compounded it generates extra interest and thus, extra financial resources for you.

Another element of a savings account calculator represents the period of time for which you plan your investment. The period of time may be different. It can be years, months or weeks. This depends for which kind of savings account you opt.

A savings account calculator also may reflect the percentage yield that was earned in case your investment into savings account is compounded. The investment can be compounded yearly, quarterly, monthly and even daily. This also depends on the particular type of investment.

As you start considering opening of savings account, the first question that comes to your mind is how much money you will earn at the end of certain period of time. Based on this information you decide whether it is feasible to invest in savings account or it is better to consider some other investment opportunities.

A tool that helps you to calculate amount of your savings account earnings is called savings account calculator. Usually you can use it for free online, because many sites provide it for free in the Internet. You can find one here:

Savings account calculator is pretty easy to use. You need to input few variables and you get the full picture of what you will earn in the future. These are variables usually are amount of investment, interest rate, compound interest, years of investment, yearly / monthly / daily APY.

When you start using savings account calculator, there are several concepts that you should know what they mean:

Interest rate – this is an interest rate for the savings account. It is a standard input variable for savings account calculator. Different investment instruments provide different interest rates that depend on the riskiness of an investment. In the case of savings account interest rate varies from 0.5% to 4.5%;

Compounding – compounding means earning interest on previously earned interest. In other words, if you invested $1,000 in savings account at 1% monthly interest rate and compounded monthly, this means that after one month you will have $1,010 on your account and the for the next month interest rate will be calculated not from $1,000, but $1,010. This is important, because if there is no compounding, then it means that for some of your money, you are not earning interest. The more often compounding occurs, the better. Monthly compounding is good, but daily compounding is much better. You should know that there is also continuous compounding; however banks rarely use such method. So before you actually open a savings account and deposit money there, you should check with the financial institution what kind of compounding it provides;