The Best Saving Accounts Out There and Importance of Having One

Posted on | April 5, 2010 | No Comments

In today’s unsteady economy, the drastic need for a ‘rainy day’ fund is important for most individuals. By establishing a savings account, this backbone security method will allow ease of mind if something tragic happens within your life. Whether someone loses their job, is unable to work for a long period of time, or has to take care of someone ill, this fund will help steady their finances for a specific period of time.

The best savings accounts available are those that offer reasonable interest rates. Some other of the best savings accounts may offer incentives for saving so much per month, year, etc. Many money market accounts are available with high interest yield to up your savings just because you leave your money alone in your account.

Some of the best savings accounts available include:

Alliance Bank – 5.16% interest rate – Minimum deposit of $5,000
Discover Bank – 5.12% interest rate – Minimum deposit of $2,500
Capital One Bank – 4.88% interest rate – Minimum deposit of $5,000
Allstate Bank – 4.40% interest rate – Minimum deposit of $1,000
Metlife Bank – 4.69% interest rate – Minimum deposit of $1,000

Please note this is just a list of some of the lowest accounts available, bank rates are subject to change.

What does savings help me do?

Take for example, a savings deposit of $1,000 when opening the account, and $50 each week after. After 3 months, you would have $1,600. Most banks pay interest on a quarterly basis. Let’s imagine your interest rate is 5.3%. Your quarterly interest on your $1,600, would be $84.90. After 1 year of keeping the same savings routine, you would yield $4,408.28. That’s only 1 year of savings. This demonstrates how important finding one of the best savings accounts out there is to your financial health.

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