The financial crisis of 2008 sent many people into a state of panic, with the stock market plummeting and banks failing, millions of people panicked and withdrew funds from their savings accounts.
Some estimates put the amount of money taken out at more than $800 billion.
While it’s true that the economy is in better shape than it was during the height of the recession, there are lots of reasons to look at opening a new high-interest savings account.
Banks are well known for offering interest rates that are much lower than the interest rates offered by other financial institutions.
However, most people do not realize that there are banks that offer high interest savings accounts.
These accounts are ideal if you are looking to earn more money on your money. You can have access to these accounts through online or traditional banks.
By opening a high interest savings account, you will be able to earn more money with your money.
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What is a high interest savings account?
A high-interest savings account is an account that offers a higher interest rate than a traditional savings account.
High-interest savings accounts are usually offered by online banks, but traditional banks may also offer them.
Why you should Open a High-Interest Savings Account
A safe place to save and grow your money
High Interest Savings accounts are a good place to make your money work and grow for you.
High-interest savings accounts are secure and protected by the Federal Deposit Insurance Corporation (FDIC).
The FDIC is an agency of the United States government that protects you against the loss of your money if your bank goes under.
When you open a high-interest savings account, the money is usually FDIC insured up to $250,000 per person per bank.
This means if your bank fails and you have money in it, you will get back at least $250,000 of your money.
Additionally, In the event of another financial crisis, it’s likely that banks will fail and your money will be lost.
By moving your money to an institution that is backed by the government, you will keep your money safe and secure.
Interest Rates
Another reason to look at opening a high-interest savings account is the interest rates.
If you have a large sum of money, by moving it to a high-interest account, you can earn more money on it.
High-interest savings accounts usually offer better interest rates than traditional banks. . The interest rate on a high interest savings account is usually higher than the interest rate on a regular savings account.
A chance to earn extra income
Having the right high-interest savings account can help you earn extra money.
A high-interest savings account is a good way to start making a little extra cash by opening an online high-interest savings account.
A chance to save taxes
Are high interest savings accounts tax free?
High-interest savings accounts are a good way to save taxes.
The way you can use your high-interest savings account as a tax-sheltered savings account is if you put your money in an online high-interest savings account before April 15th of the current year, then you can withdraw the money from your high-interest savings account without any penalty.
Low risk
So, can you lose money in a high interest savings account?
High-interest savings accounts are low-risk investment vehicles.
The money in your high-interest savings account is protected by the Federal Deposit Insurance Corporation, which guarantees your money up to $250,000.
Convenient
High-interest savings accounts are very convenient investment vehicles.
It is easy to transfer money between your high-interest savings account and a checking account, allowing you to use the money in your high-interest savings account whenever you need it.
Can you take money out of a high interest savings account?
Hing-interest savings account allow for the withdrawal of money up to certain times across a month or year. For instance, one account may allow for withdrawal twice every month or bimonthly and another one may allow for withdrawal once every biannually.
However, to generate higher interests, you should save for longer periods without any withdrawals.
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