Which Bank Pays the Highest Interest Rate on Savings

Everyone wants to earn the highest interest on their money to grow their savings. Finding the bank which gives you the highest benefit is a matter of doing some research. The country where you live is important for finding the best deal for you because the interest rates are not the same in every country of the world. There can be great differences in rates between all the continents of the world.

It is worth the time to check the different rates of the banks where you can open an account in the area you live. Smaller banks offer you often higher interest rates than international banks on a usual savings account. Even when you compare the interest rates of online savings accounts it very often happens you can make the best deal with these banks. Over the last year, we’ve noticed a lot of money is transferred from the international banks to the small and local banks.

It is best you check in the country where you live to see if you can find a bank which offers you higher interest rates. I can only speak for the country where I live but our local bank “Argenta” gives me an interest rate which is more than 1% higher than the international banks on the usual savings accounts.

When you are searching for online savings accounts you can find a lot of good deals but be careful because many of them offer these rates only when you deposit large minimum deposits. Another trend over the last years is that many banks offer a high interest rate but only for a period between 2 or 6 months.
Before you transmit your money to banks which offer these temporary rates, it’s best to check to see if you really can make a profit because they mostly require you to deposit your money t for a longer time to get this higher rate.

For example Bank X gives 4% during 2 months but it is necessary for your money to stay in this savings account for 6 months. After these two months you will get the normal interest rate of 2%. If you make the calculation in this 6 month period you can make a better deal with another bank who offers you a lower interest rate during these two months but more if you compare the interest on the term of 6 months.

Banks offer you different kinds of savings accounts but in some cases you need to put your money away for some months or even years. When you choose a traditional savings account you will have access to your account on every moment but the interest rate is variable. The best option for a traditional savings account is an online saving account. The interest rate will be higher because it is less expensive to maintain. In most cases the interest is free of taxes if it doesn’t reach a certain amount. This depends of the country where you live.

Term savings accounts or CD’s give mostly a higher interest rate. In this case you will put your money away for three months, 6 months, 1 year or even longer. If you need this money earlier there is a penalty fee, so you need to be sure you can afford to miss your money for this term otherwise you will lose the benefit of the higher interest.

Regular savings accounts give you also a higher interest rate than the traditional savings account because you need to save every month at least a small amount. Mostly these kinds of savings accounts also give you once a year a bonus which depends on the profit of the bank.

A money market account is another possibility you can consider for a higher profit of your savings. These accounts require a higher minimum deposit for opening an account but the interest rate will be higher. You can make as many deposits as you want but there is a limit in the quantity of withdrawals which you can do in one month. It is also necessary you keep a minimum balance in your account.

With online banking it is easy to take a savings account in another currency than the one of the country where you live. The interest rate can be much higher but a drop in currency value can lead to a terrible loss.

In my opinion the savings account of “Rabobank” is the one which gives you the highest interest for an online savings account but it depends on the country where you live for making the best deal. Do research and compare regularly the interest rates for finding the best interest rate for your savings account and choose for the one which fits you. The most important factor to consider is: do you need immediately access to your account or no