When it comes to choosing a bank account for savings, who wouldn't want a “high yield” savings account? Maybe that's why so many financial institutions advertise their accounts with an emphasis on the yield—instead of the terms—of their offerings. But never ignore the fine print: When you choose between the vast varieties of different savings accounts that banks pitch to consumers, it’s important to do some research to see how the accounts you're considering really stack up.
“High yield,” after all, is a relative term. Bankrate, MyBankTracker and RateCatcher are three independent online financial sites that make it easy to compare rates from several financial institutions at the same time. And when you go through the online exercise, you may well discover that some high yield savings account really don't offer quite such a high yield, after all. Fees, minimum deposit requirements and withdrawal limits all can affect the real returns you’re likely to see from your savings.
Fern LaRocca, a Certified Financial Planner® in Mount View, California, told Ally Bank that it's important to make sure the terms of an account are compatible with your financial habits. With her clients, for example, "I look at the minimum they're going to have to maintain in the account. Are they going to be able to maintain it? Are they going to be hit for fees?" In addition, she added, if the bank charges fees for certain transactions her clients are likely to need, "then the so-called 'high-yield savings account' is not worth it for the client."
The Ally Bank Online Savings Account requires no minimum deposit to open and no monthly maintenance fees. We also offer interest rates that are among the most competitive in the country according to Bankrate.com. Explore your savings options at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.