123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Maximizing Your Savings Returns

Profile Picture
By Author: Nicholas Hunt
Total Articles: 434
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Now that you have found some extra money each month, what should you do with it? Don't bury it in a coffee can out in the back yard or hide it underneath your mattress; begin searching for banks that will work hard for you.

Start out locally, with a bank that you perhaps already have a relationship with. See what kind of savings accounts they have, and what kind of special bonuses they offer. Sometimes a bank will offer a higher interest rate for an introductory period; sometimes they offer a higher one if you keep a minimum balance. Each bank is different, but the bottom line is always the same; look for the highest percentage rate for your money. The higher the percentage rate the more money you will generate.

How can you make money just by having it sit in a savings account? Well, banks need money for other loans. Basically, banks collect money from customers of various accounts, and they use that money to make loans for other customers. Don't panic, your money is insured so that if you need it, you can withdraw it without any problems, that's what the FDIC does. The FDIC insures that you will get your money ...
... if your bank goes under. As an incentive for you to give a bank your money, they offer interest rates that pay you a set amount of interest on your money over a specified time limit. Some banks pay by the month, quarter, or year, and your interest rate may fluctuate over that time period or it may stay fixed; this all depends on the policy of your bank.

With all that said, how do you find a bank that will pump up your investment? Start doing your homework. Find out what percentage rates banks in your area are offering. Once you know that number, you can start looking into the finer points; how often does the account accrue that interest? How often does it pay out? Do you need to keep a minimum balance? What happens if you drop below the mandatory minimum balance? All of these questions can be answered by a banker in person or over the telephone. Bank websites are good places to get general information and make your initial inquiries, but when it really comes down the wire, personal service when getting all of the details is of the utmost importance.

Find out how to get the best possible deal from the bank you choose. Some banks offer different types of savings accounts, and your banker can help you choose which one is right for you. Some banks offer high yield savings accounts; these normally pay out a higher percentage rate, but only if you make a substantial initial deposit (sometimes $10,000 or more), keep a high balance over time, don't withdraw from the account frequently, or give them your other banking business (such as checking accounts or mortgages). Other accounts do not have a required minimum deposit or a required minimum balance, and they may not regulate withdrawals. All of these things need to be taken into consideration when you decide how best to grow your money.

Research, take your time, and choose a bank that will work for you. This is the best way to cultivate your savings.

About the author: Nicholas writes for http://www.yourbankingguide.co.uk/ and you can compare savings accounts at http://www.yourbankingguide.co.uk/compare-savings-accounts.html - visit today to get your savings working harder.

Total Views: 268Word Count: 569See All articles From Author

Add Comment

Investing / Finance Articles

1. Chart Patterns For Effective Intraday
Author: strike

2. Analysis Of Bank Statements: Essential For Banks And Nbfcs
Author: Aakash Parikh

3. Essential Tips For Buying Crypto Miners: Make Informed Decisions
Author: blockdag

4. Everything You Need To Know About Applying For A Swift Funds Loan
Author: Sofia Alice

5. Finding The Right Mortgage Broker In Abbotsford And Surrey, Bc
Author: Satbir Bhullar Mortgages

6. Jaydeep La Residency Thane Kolshet Road Project 2 & 3 Bhk Flats
Author: akhilagardas

7. Embracing Sustainable Investment With Esg Data & Solutions
Author: By Inrate Team

8. The Importance Of Lead Qualification In Solar Appointment Generation
Author: Shan Tait

9. Setting Up Your Company In Ireland: Key Considerations For Successful Formation
Author: LSC and Partners - Corporate Tax Consultancy LSC

10. Mortgage Lenders edmonton – How Are They Going To Help You
Author: Dominion Lending Centres Ratefair

11. Why Managing An Smsf In Perth Can Maximize Your Retirement Potential?
Author: Daniel Stewart

12. The Future Of Cryptocurrencies: A Look Ahead
Author: Ethan

13. Unlocking The Power Of Biodiversity In Data Solutions & Rating Services
Author: By Inrate Team

14. The Role Of Chartered Tax Advisors: Ensuring Compliance And Maximizing Benefits
Author: Business Tax & Money House

15. Innovative Accounting Solutions For Modern Businesses
Author: Business Tax & Money House

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: