High Yield Savings

 

What are High Yield Savings?

High Yield Savings are exactly that. Things that you can put your money into and get a higher interest rate then you normally would. This could be in the form of a High Yield Savings account with a bank. One bank may offer 1% and another Bank 5% so it is all relative depending on the interest rates at the time.

To obtain a Savings account

Banks
Banks tend to offer high yield accounts to those they consider valued customers.
So for many banks you will have to meet some criteria. This may include one or more of the following
•    A large initial deposit
•    High balance kept over time
•    Limited transactions on the account
•    Having other banking relationships

Online
If you do not have a history with a bank then you can find High Yield Savings accounts online.
With internet banking accounts this can be quite different as none of the above criteria may apply. You are technically doing more work by doing all the account management so they often pay higher Interest Rates.

It is definitely a good idea to shop around and find a product that fits your needs. Are you forced to keep the money in the account for a certain time period or you lose the higher interest rate. Does that matter to you?
 

Other Savings
Sometimes investors may offer you the opportunity of  high yield investment. You invest with them and get 5% higher interest rates then the bank. This is a more risky form of savings. So it depends on what you are comfortable with. However it can be very profitable. Some people may consider Investment Property or Shares as High Yield Savings as you put money into something in the beginning and in many cases are forced to keep putting money in. Whatever you decide to do it is a good idea to have some form of High Yield Savings.