- 1). Assess how you prefer to bank and what features you are willing to sacrifice to receive a higher rate of return. Community banks provide more personalized service, national banks with local branches provide a broader array of products and exclusively online banks provide higher rates, with less hands-on service. Each have their own sets of advantages and disadvantages. With so many banks to choose from, the initial search can be overwhelming.
- 2). Rank interest rates. Make a list of each bank you are considering and take note of the interest rate being offered on the high-yield savings account product. The higher the rate, the more interest you earn on the money you deposit into this account.
- 3). Look at initial balance requirements. Each bank requires a minimum deposit for you to open your savings account. Take stock of the minimum balance requirement and line it up to how much you are able to put into the savings account. If the requirement set forth by the bank is too high, you can remove that bank from the list.
- 4). Find the interest rate tiers. Banks sometimes offer higher rates on higher balance levels. Identify these balance tiers and realistically assess how much you will be able to save. If you will never get to the highest savings tier upon which the highest interest rate is based, a bank with lower or zero tiers is probably more appropriate.
- 5). Read the fee and service schedules fine print to learn about monthly maintenance fees, transaction fees or low balance fees that your bank may assess. Fees can quickly cut into your interest earnings or provide you access to additional services not offered by other banks.
- 6). Learn about promotional offers and rates. Cash bonuses on initial deposits and introductory, limited time higher rates are frequently offered by banks to earn your business. These bonuses or higher returns you can earn, even for a limited time, should be documented as part of your high-yield savings account scorecard.
- 7). Visit or call your short list. Make a personal visit or phone call to each bank on your short list to learn more about how the bank operates and if you are comfortable with how they treat their customers.
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