Considering Interest Rates For Savings Accounts
Michalis 'BIG Mike' Kotzakolios
Defined Tag: Interest Rates For Savings Accounts.
Interest rates, it seems, rule the world. Or at very least, they drive or are driven by them. It is like this with the constant pursuit of interest rates for purposes of borrowing money -the foremost being the prime rate and subsequent rates. However, for the purposes of this article, we will be tossing about ideas relating to interest rates for savings accounts.
All banks are not created alike. This is a truism that people tend to learn only too late in life. Very often people will invest their money into an account without ever considering interest rates for savings accounts. I write "invest" their money as this is just what is happening: monies are being placed into accounts with the expectation of a return on said money. However, the truth is that if a person has even a few hundred dollars, that money could better be placed in a few places. First, there are money market funds, low yield CD's, and, most applicable to the average person, a better savings account.
Of course, what makes for a better savings account is a bit subjective and even debatable. Such considerations include accessibility, service, fees -including those ever-elusive hidden fees, and the multitude of similar -yet slightly varying- interest rates for savings accounts from different banks.
This last point needs to be considered quite greatly, especially by younger investors, who rarely tend to read the fine print or consider the implications of minor interest rate differences. If you consider that a yearly increase of only 3 or 4% of anything -money, people, or whatever, results in a doubling of these people, money, etc., within twenty years, then your eyes should begin to open. This is also true with a quarter of a percent interest changes.
So now it becomes a bit clearer as to how important it is to consider interest rates for savings accounts. Yet how can one garner the best deals? The simple truth is, by a little hard work. This means canvassing first your neighborhood, as proximity is important, for every bank in the area, and then doing the same with banks along routes that you commonly frequent (such as on the way to work). It's this simple. Once a great rate has been found, open up your wallet and prepare the adventure.