What type of bank account yields the highest interest rate?

Question

Annual Interest Rate or any other form of interest rate

Answer 1

Emigrantdirect.com and INGdirect has one of the highest interest rate for a savings account.

But a majority of Bank accounts usually don't have high interest rates. You are better off investing in mutual funds if you want the highest rate of return in the LONG RUN.

Answer 2

bigger dollar amounts and longer term CDs pay the highest interest but I'd question why you'd want to lock up money for a long term in a market of rising interest rates. In this environment, what is a great rate today may suck in a year or two.

Two other options:
1. Paypal pays a really nice interest rate and there's no minimum balance or term restrictions. They are currently paying 4.73% and that's a lot better than the banks. Plus you get a mastercard debit card and everytime you use it as a credit card, they give you a percent and a half back. (though if you really want your savings to grow, you won't use it)

2. Brokerage firm or mutual fund money market accounts. These often pay as well as CDs and because rates aren't locked in, they should rise with the market as interest rates climb. Just note, most are not insured against market loss like a bank account will be, but the odds of loss are slim especially if you use a big name firm. Even ETrade and Schwab have money market accounts.

Best of luck.

Answer 3

You could even put your money into CD's in a CD ladder. This is when you split up the entire amount into equal sections. Put one in a 1 year Cd, another in a 2 yr, yet another in a 3 yr and another in a 4 yr. Then when the 1 year comes to term, put it into a 4 yr as well. Keep putting them in 4yr cds everytime they come due. This way, once a year, some of your money becomes available if you needed it for some reason or another.

Otherwise ING offers good rates on savings accounts. Check that out.

Answer 4

Currently, CitiBank is offering the best/highest rate on eSavings account - 4.75%. No minimum, nothing like that.

Ah..there is a catch...You also MUST have one of their checking account - I think something like $1500 minimum/Direct Deposit/2 Bill Payments.

Then you don't pay any monthly service charge on the checking account and get to enjoy the 4.75% on the eSavings account.

To my knowledge, there are 4 options for savings - ING Direct, Emigrantdirect, HSBC Online savings and then CitiBank. Citi pays the most %.

Do your research to get the No/Least minimum balance, No service charge and above all easy access to your money - either thru' ATM ( watch out for ATM fees ) or thru' Debit card ( with a checking account ), and definitely online access.

CDs are NOT GOOD, if you need access to your money anytime. With CDs you lock in your money for additional years, just to get 0.25% more per year.

With INFLATION going up, even 4.75% may not cut it...so, forget about CDs, where you WILL pay penalty in case you withdraw YOUR money before maturity.

Answer 5

Bankers will tell you its in an annuity,or in municiple bonds,however these are not covered by FDIC,and are not safe in my oppinion.
If you must use a bank as opposed to investing your money in real estate as an example then the best I know of in banks are their 24 or 36 month C.D. plans that pay close to 6%,and you can have this interest cut to check each month so you use the interest,and your priniciple is guanteed by FDIC.
If you have a large amount of money to invest you might look around at the giants in investment trump,and other billionaires,and see where they are investing.

Answer 6

Certificate of Deposite (CD). Currently some banks offer up to 5.25% annually for a contract of 13 months.

Answer 7

Try becoming a member of a credit union. Or try saving your money with in a CD. You could do some shopping evn try insurance companys some times they have great deals.

Answer 8

cd with longer term

Answer 9

money market