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Depending on your individual needs, the implementation of your funds in a high interest savings account can be an attractive option. After all, this can help you save to major expenses for which you are already hiding funds, such as sending children to university or implementation of money A new house . And even in short -term situations, experts say that these accounts have their advantages.

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"I am a big fan of high interest savings accounts! They can be such a good alternative to your standard savings account - or to fill money under the mattress," said Trae bod , A smart shopping expert on TruTrae.com. "However, they are not all created equal and may not always be the best place for your funds."

How do you know it's time to settle with a new account? Read the rest to discover the reasons why you have to go to a high interest savings account, according to experts in personal finance.

1. You already have the minimum amount in hand to harvest the advantages.

Most people open a high interest savings account in the hope of seeing their balance increase more quickly over time, thanks to the special rate. Having a solid base to start will help you see the advantages immediately.

"During the transition to a high interest savings account, the maintenance of the balance required to receive the high interest rate can be difficult for some" Annette Harris , founder of Harris Financial Coaching , tell Better life . "For example, the account may require that you maintain a balance of $ 25,000 to receive the high interest rate. If you drop below this balance, your interest rate will also be."

This can also create a challenge if you hope to go to the next level interest rate. "This may require substantial deposit to receive an additional or two additional percentage points. For this reason, it is important to consider whether other savings or investment schools would be more beneficial," she said.

2. It could be one of the safest investments you can make with your money.

Any financial decision is accompanied by potential risks and awards, which makes it difficult to assess what suits you best. However, experts say that high interest savings accounts provide one of the safest ways to park money.

"Passing your savings in a higher online savings account is the only free lunch in finance," said Greg McBride ,, Chief financial analyst on Bankrate.com. "You get an additional return and you don't have to take any risks to get it."

In many cases, you will see many of the same advantages of a traditional savings account - only better. "Your money is protected by federal insurance insurance [FDIC], the account can be linked to your current bank for easy transfers in both directions, and the best yields are in the district of 4.5 to 5% , compared to the average savings account which pays 0.23%, "explains McBride.

According to Cheri Read , a financial expert with Market guides , the use of a high -performance savings account can make a big difference for your long -term finances. "You can earn about $ 2,600 over five years by having $ 10,000 in a high-efficiency savings account compared to a traditional account," she explains Better life . "In addition, they often do not have monthly maintenance costs or minimum balance conditions."

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3. You do not plan to have to remove your savings very often.

Ideally, all money in your new savings account should only be accessible if it is a disastrous situation or you pay an ultimate goal as retirement. Indeed, depending on the terms of your arrangement, withdrawing a high interest account can be accompanied by expensive penalties.

"Check all the withdrawal conditions attached to the account," explains Alex King , certified public accountant and founder of Generation of money . "You will often be penalized to frequently withdraw money from high -efficiency savings accounts, potentially even lose interests won."

4. You have a specific objective in mind.

Whatever the phase of the life in which you are, there is a decent chance, there is at least a stage expenditure on your horizon. Experts say that by their very nature, certain savings accounts can help you achieve your goals even faster. AE0FCC31AE342FD3A1346EBB1F342FCB

"High interest savings accounts are generally very beneficial for specific objectives, in particular for individuals who find it difficult to stick to a budget due to financial trauma", explains Alejandra Rojas , founder of The Money Mindset Hub . "Using one for a vacation or an annual saving or Estimated quarterly taxes , especially for entrepreneurs, can be advantageous. ""

She adds that before moving your money, it is important to sit and define your goal. In this way, you can determine how you want to interact with your money and assess your level of comfort by taking financial risks.

"If your goal extends beyond six months, you prefer to leave your savings intact and are opposed to the risks of investment, then a high interest savings account is the best option," she said.

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5. You need a safe place to store your emergency funds.

Even during savings for the future, reality is that sometimes things do not go as planned. But there may be an advantage to park your money in certain types of accounts on others.

"A high -efficiency savings account can be ideal for establishing an emergency fund that arouses interest," said Read. "You will need immediate access to your money if something suddenly happens, like a medical emergency. But if you have the chance not to need it for a while, it will accumulate interest until this that you do it. "

6. You don't want to hunt interest rates.

Party to get the most out of your investments regularly consists in checking that you get the best possible yields. But if you try to avoid a lot of short -term movements with your money, maintaining a high interest savings account with an institution in which you trust can be a way to rationalize your finances.

"If your balance is low Scott Lieberman , founder of the personal finance website Touched money . "If your balance is $ 1,000, you leave $ 10 on the table by not changing banks. $ 10 a year is really worth getting to know a new bank and understanding its processes? For the most part? people are not the case. "

In the end, Lieberman adds that as long as you know that you will invest a healthy amount or your interest rate is terribly low, you can choose a good interest rate and stand there.

7. You have found an institution you can trust.

Shopping for a large interest rate has become easier thanks to the Internet and increased access to institutions that may not even have brick and mortar branches.

"Most high -performance savings accounts that offer the best rates come from banks and credit cooperatives that work exclusively online," explains Read. "Online banks do not have the general costs associated with branches and their staff."

However, this can also create a slightly higher risk: some experts warn that certain offers could be too beautiful to be true.

"The most attractive deposit rate can come from a bank that is not as known as the main institutions," explains Jeffrey Stouffer , A Personal finance expert With Justanswer. "Or if it comes from a large institution, it may indicate internal problems that an influx of money can solve."

He says that although the FDIC guarantee banner can comfort the depositor, which is often not known, this is what can happen to a bank deposit account that the government has taken after a failure . "He will be returned or transferred to another bank," he explains. "It will not work well if it was an emergency fund and that an immediate appeared."

This is why he says that like any investment opportunity, it is essential to ensure that the bank offering the most attractive deposit at the moment has a solid base. "There have been too many recent examples of bank failures in the current interest rate environment," he adds.

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8. You will not need to quickly access your money.

Savings accounts can be a useful resource when a sudden emergency or an unexpected expenditure requires more money than your budget cannot manage. This is why some experts warn holders of high interest accounts may not always be able to obtain their money as quickly as necessary.

"It can sometimes take a little more time to access your money," said Robert Farrington , founder and CEO of The college investor . "And as many of these banks are online, you will have to transfer your funds to another bank to access it as a currency lasts in some cases."

However, this still does not necessarily do the worst investment option, especially if you are part of your emergency fund elsewhere. "Despite potential sanctions on your withdrawals, it is always relatively easy to access your money in relation to investments related to goods or other non -liquid assets," said King.

9. You are new to determine where to park your money - or you get back from a financial accident.

Even if you know the investment, it can be intimidating and fast. But for those who accumulate enough funds to save or bounce from a set of losses, a safer investment as a high yield account could be one of the best options for the immediate future.

"From the point of view of financial trauma, a high interest savings account provides a good first step for those who seek to change their financial habits but are still worried about investing," said Rojas. "As this is a new product, you have to get out of its financial comfort zone."

10. You are comfortable getting less reward in exchange for less risks.

Whatever your financial situation, the high interest savings accounts offer a relatively without risk of making money on the money you have in hand. But if you are able to think in the long term, there is a chance that you can make the most of your money by being strategic with at least some of the funds.

"You can get a higher return on your money by investing instead, although it has a greater risk," said King. "With the increase in prices, however, the return on high interest savings accounts becomes more competitive in relation to stock market yields."

Best Life offers the most recent financial information of the best experts and the latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.

This story has been updated to include additional inputs, verification of facts and copying edition.