Want the highest savings account interest rate? Now this work

Today’s economy is plagued by skepticism (if chilling). Inflation and higher interest rate, it can be hard to find a silver lining. While interest rates have hurt potential homebuyers and homeowners looking to refinance, they have at least increased the opening. High yield savings And Certificate of Deposit (CD) account. Rates on these types of deposit cars have risen exponentially in recent years, making them a great place to protect and grow your hard-earned money.

That said, like all financial products and services, there are some smart ways to take advantage of these accounts, especially now In particular, if you’re only interested in getting the highest savings account rate, there’s one approach you should strongly consider.

Start by exploring high-yield savings accounts here to see how much more you can earn

Want the highest savings account rate? Consider an online bank

There are several Ways to secure higher rates for your savings accountBut arguably the best way is an open one Online account. Many online lenders and banking institutions offer interest rates Now above 4%Which means you lose money By keeping your savings in a regular account. The average rate on a regular account is currently just 0.40%, according to FDIC.

For more context, compare what you would do by depositing $5,000 in a Regular account vs an online high yield one. After a year with the regular account, you’ll be down to $5,020. But with a high-yield account, your bottom line will jump to $5,200.

And that is at 4% interest rate! If you shop online for a high-yield account, you can find potential interest rates 12 times more than what is available in regular accounts. That’s a lot of money to make for very little effort on your part.

Why do online banks offer high interest rates?

Online banks are just that – online. As such, banks often don’t incur the same overhead costs as brick-and-mortar locations. They can pass some of that savings on to account holders through higher interest rates.

That doesn’t mean your current bank or credit union doesn’t have competitive rates either. This means you’re more likely to find a much higher savings account rate with an online institution than with a bank with multiple physical branches

Other considerations

Although online banks usually offer the highest savings interest rates, they are not for everyone Many account holders offer such a personal touch as in-person banking. While you’re able to speak with an online bank representative over the phone or through an online chat, you won’t be able to pop in during the week or weekend to complete your banking like you would with a bank. There is a location near you

Likewise, making deposits and withdrawals can be more complicated. While some online banks offer debit cards, others may not. In this case, you may need to complete your banking using an institution that you can link to online. From there, you can make appropriate lifts and transfers as needed.

Bottom line

Interest rates on high-yield savings accounts Faster than just a few years ago, now makes for a great time to open one If you’re looking for the highest possible rate, consider looking for an online account. Because online banks pay less without an in-person location, they almost always offer higher rates on these accounts than their physical location counterparts.

Get started with an online savings account today and start making more money!