In years past when depositing funds into a savings account one just went to a local bank or joined a local credit union. While this process was simpler you probably didn't receive the best savings account rate available. The savings rate you did receive was probably competitive since banks and credit unions subscribe to bank news letters that set average rates. These days, thanks to the Internet the average person has the tools necessary to find the best rate online. Banks and credit unions realize the internet has made it possible for someone in Florida to open a savings account with a bank or credit union in California. This has made rate competition between banks and credit unions a lot more competitive. There are sites that are dedicated to finding the best rates. These rate aggregator sites are plentiful these days but only the best sites have comparison rate tables listed. There are online banks that only do business online and as a result are able to offer higher interest rates on savings accounts, certificate of deposit accounts and money market accounts. The reason why these banks are able to offer higher rates is their operating costs are lower. The average investor or saver, if you will, can get the best savings rates and money market rates by searching rate tables online for the best rate available from a bank or credit union locally and nationally. Depositors are no longer restricted geographically. There are banks and credit unions that only offer savings accounts in certain areas or states. Opening a savings account at a credit union is different than opening a savings account at a bank. In order to open a savings account at a credit union you have to join a credit union. You also have to open a savings account to join a credit union. Credit unions also have membership requirements which can include living in a certain county, working at a certain company. Credit unions might also have requirements like being a military person or a relative of a military person. Regular banks, credit unions and online banks offer regular savings accounts, Internet (online) savings accounts, and jumbo savings accounts. You can also find financial institutions offering custodial savings accounts, IRA savings account and health savings accounts. Credit Unions also are known for offering vacation savings accounts and Christmas club savings accounts. Regular savings accounts at banks and credit unions can be opened with as little as a $1 deposit. Some banks and credit unions have higher opening savings account balances. Jumbo savings accounts pay a higher interest rate than regular savings accounts. Jumbo savings interest rates are higher because they require a higher minimum deposit to open an account. When you open a deposit account, you first need to search for the best savings rates and MMA rates you can start your search at local banks. You can also search for the highest savings yields and MMA yields at national banks. Savings accounts at banks are insured the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. When you are searching for the highest credit union interest rates you can start your search at local credit unions. Some credit unions allow you to open a share savings account regardless of where you live in the United States so don't limit your search to local credit unions. Savings accounts at credit unions are insured the National Credit Union Administration (NCUA) for up to $250,000.
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