How do I Choose the Best High Interest Bank Account?

Nicole Madison
Nicole Madison

Choosing a high interest bank account may help you earn money on your deposits rather than having them sit in your account earning little or no interest. To choose the best high interest bank account, you may take some time comparing the interest rates offered by several different banks. You may also consider the minimum balance requirements and banking fees offered by each of the banks on your list. Additionally, you may find it advantageous to choose a bank that offers online banking and a brick-and-mortar location that is conveniently located.

When selecting a bank that pays high interest rates, ensure that the institution is FDIC insured.
When selecting a bank that pays high interest rates, ensure that the institution is FDIC insured.

One part of choosing the best high interest bank account is taking some time to compare the rates that are offered at several different banks. Some banks may offer interest rates that are higher than others; you can generally get interest rate information over the telephone or by visiting a bank's website. You may even compare interest rates by visiting a website that offers side-by-side comparisons of the rates offered by various banks.

Once you’ve compiled a list of the financial institutions that offer the lowest rates, you may compare them in another way. Depending on your preferences, choosing the best high interest bank account may involve selecting a bank that offers online banking as well as a brick-and-mortar location that is conveniently located. This can be important, as some financial institutions may not have a physical location in your area, and there may be some banking tasks you cannot, or prefer not to, complete online. Likewise, choosing a bank that requires you to visit a branch for every transaction may not be as convenient as selecting a financial institution that is both conveniently located and online.

Comparing the terms of the accounts you are considering may also prove important when you are trying to select the best high interest bank account. This typically involves considering the fees and minimum balance requirements of each account you are considering. If you choose an account that has high fees, you may lose a significant amount of the money you earn in interest to paying them. Minimum balance requirements may also lower the amount of money you earn via your account. If you do not keep the minimum amount of money in your account, you may face fees that lower the amount you ultimately earn on your deposit.

Nicole Madison
Nicole Madison

Nicole’s thirst for knowledge inspired her to become a wiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

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