Why High-Interest Savings Accounts?
#2. The next thing that you have to consider while contemplating on a high-interest saving account is the type of account that you must go for. There are two basic types of accounts here, the deposit savings account and the regular savings account.
A deposit savings account gives you more freedom regarding the amount of money that you can deposit in the account – it can be as little or as much as you can afford to put in. But, this freedom comes at a price because they will offer a lower interest rate.
A regular saving account provides a much better rate of interest, but there is a minimum restriction on the amount that you can deposit each month. In case your amount is less than this sum on a particular month, you won’t get any interest for that month.
#3. Some accounts do classify in the genre of a high-interest saving account, but then these accounts will need a notice period before you can withdraw any money from them. This will be cumbersome for you if you frequently need money promptly. Some of these notices could stretch up to 3 months, which could be bad for a running business.
The thing you need to remember here is that a high-interest saving account is possible, but you have to see whether this is something you can afford – through both time and money. The compromises that you need to make could be more than you bargained for.
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