Starting a bank account is an exciting moment in a young person’s life. With a bank book in hand, he watches the numbers start to accumulate and the balance grow. But how much difference does the interest rate make after a few months or a year? With a personal account high interest, savings grow quickly, but most accounts do not provide high interest. The average individual is only saving a small amount in an accessible account. These active accounts grow slowly as they are constantly being used.
When a consumer wants to earn big dollars with his account, high interest savings is one of the best ways, and among the least risky. To succeed, a client will need to start with a major balance: an amount over $1,000 at least. With this sum, he or she will access a higher interest rate than the average person, whose savings account contains a few hundred dollars at a time.
A sum of $25,000 earns a client’s account high interest rates indeed. These are often called premier or preferred rates. Rates for these account holders are anything from 10-40% depending on which institution and the amount a customer manages to save. The terms of these accounts are sometimes limited, so clients are encouraged to pay very close attention to expiry dates and when these rates might be subject to renegotiation.
Also, to provide an account high interest benefits, a bank also offers some account packages which are not for active use. These are set aside for clients under a certain age. Neither parents nor guardians can touch the money in these accounts, and the only people who can access them are the account holders when they reach the age of majority. These are popular with wealthy relatives for helping their grandchildren or favorite nieces and nephews prepare for post-secondary education and a life of independence, which they know would be much harder without the financial help.
Finally, consumers should take note that banking institutions set up a lot of rules for starting high interest savings accounts and might even insist that a program will only be available online, not at a physical branch. If a person does not have enough money to take advantage of high interest rates, he could consider investments, but these are much riskier. One important reason why patrons choose savings over investment, however, is that buying stocks and shares with an aim to making big money fast is much riskier, although it can also be a lot more lucrative.