The internet is a tool that can be used by many for a number of different things in terms of e-commerce and the like. Now, banks are starting to get in the game by offering the best bank interest rates through their websites. Banks are pretty competitive when it comes to what to they offer their customers, and interest rates are one of the most important things consumers look at. Banks offer different types of interest rates that correlate with different accounts– here’s a brief overview of the best bank interest rates!
Savings accounts, most liquid, lowest return
- Savings account: Most people have savings accounts because they are a liquid account that offers convenience, yet offers interest as well. Every bank has some sort of savings account deal for their customers and often it will be linked to a checking account as well. Expect .25% to 2% interest on your account. People love these because they can get their money in and out very quickly if they need to.
Money market accounts, very liquid, better return
- Money market: Money markets can be found online or through a local bank and is a little bit of a risk, although you most likely will never lose any money. The best interest rates through money markets are usually over 5. A bank will use your money to invest in various safe things, which is why your interest rate will be so good. Money markets usually go up and down pretty consistently, although they change just slightly.
Certificates of deposit, not very liquid, best return
- CD: People that can afford to throw money into an account and not touch it for a significant amount of years can cash in quite a bit with the best bank interest rates. Banks will offer 5% + when it comes to CDs because they have a person’s money locked up for a good amount of time. You can usually get a CD for 1 year or 20 years. The only real downside of having this type of account is that you can’t access your money, even if it is an emergency, or if you do, there will be a penalty.
Browsing the internet will bring up the best bank interest rates and you can easily find one that fits your needs the best. There is no reason to hide your money under your mattress- take advantage of the great deals banks are offering! Check out (www.bankrate.com) for a good comparison tool.