When money is tight, the best option is to place your money into a bank account that will continue to earn for you on a consistent basis. Checking accounts often provide no return on investment no matter how well the account is managed or how high the balance is in the account. There are high yield savings rate bank accounts that capitalize interest on the money you deposit, but there are rules and regulations surrounding each of the accounts based on the bank holding the money. These rules can include:
* Mandatory minimum balances - or fees will be charged
* Varying interest rates - from 0.5% up
In order to find the best high yield savings rate- there are online websites aimed at providing information to the savings consumer. Bankrate.com is one of the most popular. On the website, the consumer can search for a high yield savings rate bank account and find all information about the accounts offered.
The idea of the high yield savings rate account is not the same as a traditional savings account. These accounts are for long term savings like the emergency funds all families should have in case of immediate job loss or financial emergency. The accounts often have a lag time between when the money is requested and the withdrawal process is complete. This lag can range from two to five days meaning the money may not be there when you need it.
With the lag associated with a high yield savings rate account, many people choose to keep part of their emergency fund in a more accessible account with the remainder in a high yield savings account. The high yield savings rate accounts can increase the amount of your savings, if you are willing to meet the requirements and give up immediate access to the funds.