What is the best type of savings account?

Question

If I am going to have a couple thousand to put into a savings account what is the safest and best way to handle it.

Answer 1

The best savings account is the one that is going to give you the most interest. Also if you are really trying to save you may consider one that penalizing you for taking money out until you reach a certain account balance. The safest way to handle it, is like any other account put some money in each month. Also like my savings account can be used as overdraft protection in case my checking account balance gets too low, so I don't write any bad checks. Hope that helps

Answer 2

Check with your local credit unions.  Credit unions typically have lower hidden costs.  Also check with your local banks. You should be able to get close to 3% for your money.   Hidden costs can kill you.  I transferred money into a new account with fifth third and they charged me $85. for opening the account.  They also charged me $2.00 every time I went to the teller window.  When I went back to close the account, they cancelled the charges.  So beware.  Ask questions.  

Answer 3

You would want to find a bank that pays at least 3.5% in interest. WAMU, HSBC are two of the higher paying savings accounts out there. Check out http://www.bankaround.com and find a bank in your area to see more choices.

Answer 4

I'd use one of the online banks like HSBC Direct or FNBO Direct or Virtual Bank. They pay around 3 1/2 percent interest. You simply link your account to your existing checking account to transfer money. PayPal is a decent alternative also, but pays a little less interest.

Answer 5

High Yield CD

Answer 6

The banks that pay the highest interest rates are the on-line banks.  Make sure the one you choose is FDIC insured and that it's relatively easy to make deposits and withdrawals.  I've used ING for years and I'm very satisfied.

Answer 7

An online savings account is probably best, OSA's pay a higher rate then traditional savings accounts if you do not want to lock your money in a CD.