High Yield Savings Account Chapel Hill NC

Getting a high yield savings account is definitely a catch 22. The more money you have, the higher interest rates you can earn. The less money you have, the lower the interest rate. Of course, most of us on the bottom of the scale feel that we need that higher interest rate more than the guy that has the millions. So how do we find the best yields?

There are several things to watch for as you are looking.

1. Fees - Some banks will charge a fee if your balance is under a certain amount. Others will charge a fee for not using certain features, such as online bill pay at least once a month, or for using certain features too much in a month, such as the ATM. Make sure you can abide by the rules in order to keep the account free of fees. Fees will certainly eat up any benefit that having a high yield account would provide.
2. Options - Some of these accounts are stripped down accounts. Basically you can use it as a savings account and not much else. Others provide a lot of additional options - such as ATM cards, checks, online bill pay, and sometimes even unrestricted access to the funds in the account without fees. Look for the accounts that have the best yields AND the options you will use.
3. Locations - Some of the best rates are only found at web based banks. You have to decide how comfortable you are with not having a traditional bank you can walk into. That doesn't mean that you still shouldn't shop around with your local banks. Rates can vary quite a bit and you should still decide based on your comfort with the individual bank.
4. Ease of Use - Some banks, both online and traditional, can be a little less than easy to work with. Setting up accounts can be difficult and getting a live person if you need one, can sometimes be impossible.

If you check around online, you can find websites that have compared numerous banks with a focus on high yield savings accounts. Some will compare additional features and some will also allow readers to rate the banks based on various factors.

If you do a minor background check, you shouldn't have to worry too much about safety. Banks and Credit Unions regularly carry $100,000 of FDIC insurance. Currently, they are covering up to $250,000. So unless you have more than those limits in your accounts, you would be reimbursed 100% for the amount in the account if the bank should go bankrupt. If you have more than that, the best thing to do is to split the money between several banks. Make sure your total at each bank is under the FDIC Insurance limit and that way you will be fully covered.

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