High Interest Savings Accounts And Alternatives Have Consumers Weighing Costs Of Earnings And Fees

10/31/2011
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Earning high interest on savings and investments is obviously the primary goal of any consumer or investor, but for those who turn to options like high interest savings accounts or alternatives like CDs and money market accounts, questions over the earnings a consumer has the potential to see, the use of a particular savings a strategy, as well as costs that may arise are all factors that are currently being weighed by those who are looking into such options as a high interest savings account. Obviously, many consumers often turn to online banks when they want a high interest savings account as the yield on some of these accounts can be anywhere from .5% to 1% or higher, depending on the institution.

Obviously though, when it comes to other savings strategies like MMA’s or CDs, there are potential opportunities for more earnings but this also means that some consumers may not have access to their money quickly and this is where officials here at the end of October have pointed out consumers need to be aware of why they are opting for these high interest savings accounts or alternatives for their specific needs. Some individuals simply want to set money aside, get a higher return than they may have been able to do if the money had been kept in a traditional bank account, and then potentially use this money in various ways once a certain investment has matured or after certain amount of time, but this does not mean that investors will have easy access to their money.

This is where high interest savings accounts have been the focus of some consumers as there are men and women who set money aside for a variety of reasons, like for emergencies, allow these high rates to help them acquire more funds while this money is in their account, but when access is needed to their cash, they are in a position to access it more quickly. In some cases, if a consumer withdraws funds from certain types of savings accounts or investments, it could cost them a hefty amount in fees, but of course there are also some requirements on high interest savings accounts that could lead to monthly fees as well, such as a consumer not keeping a specific minimum balance.

While there is some concern that rates are high interest savings accounts have been down in some areas, consumers who are still looking for these high earnings opportunities on their savings do need to make sure that they not only look at the aspects of a particular account, like the fees that may come with a CD or savings account, any requirements like a minimum on a balance, and specifically what they plan to use this account for in terms of how accessible their funds will be if they need them quickly, are just a few of the factors that consumers must weigh when looking at high interest savings accounts or alternatives when it comes to earning more from their money.

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