When you are thinking about a high interest savings account, make sure you’re not giving your money away…
To the banks that is! Many of us are so afraid to lose our hard earned money through investing that we stash our funds in a high interest savings account. While this is a better option than under our mattresses, you have to make sure that the account you choose works for you. Trust me, there are many instances when where folks are actually paying the banks to hold their money!
High interest savings accounts provide higher returns than chequing accounts, but you have to make sure that you know what you are being charged for and that the costs aren’t outweighing the benefits. Other than traditional account fees, you can be charged significantly for everyday transactions such as using the ATM to withdraw cash, use your debit card or send a transfer.
Just because you prefer low risk investments, doesn’t mean that you shouldn’t make the most of your interest potential in high interest savings accounts. Some high interest savings accounts have a minimum balance requirement and until you hit that threshold you don’t actually earn any interest.
At the other end of the spectrum, some high interest savings accounts have an upper threshold too. In this instance there is a maximum amount of money that you can earn interest on, but the bank won’t stop you from putting more money in the account.
You should know the nuances of the high interest savings account you have or are looking into to ensure that you are making the most of the interest and maximizing your growth potential!