7 Tips on How to Open a High-Yield Savings Account

7 Tips on How to Open a High-Yield Savings Account

Savings account helps us in many different ways. You can use it to achieve short-term goals, keep your emergency fund, save for investment, and more. Most banks offer high-yield savings accounts to help you grow your savings through interest. If you want to take advantage of this kind of saving account, open up a high interest savings account with Great Southern Bank.

There are steps and ways to consider when looking for and opening up a high-yield savings account. You don’t need complicated documents and processes to go through to get your account ready. Read on to learn how to keep your money as it grows passively.

Tips on Opening a High-Yield Savings Account

Aside from rarely charging monthly fees, high-yield savings accounts also take a little effort to sign up for. However, you must know other things to consider when starting a high-yield savings account. We list down important tips to open a high-yield savings account.

1. Look for the Higher Rates

Pick a bank you know can help you earn on your savings account instead of brick-and-mortar banks. Since the technology evolved, different banks with high-yield savings accounts are more accessible, which is good if you want to beat inflation.

Online banks are one of those who offer higher rates since they are internet-based. There is no need for staffing, construction, and operation expenses for online banks which makes them able to focus on giving higher rates. You still need to compare each of these banks and get much information to study. 

Also, you will need to dive deep into the marketplace status and be updated on the latest high-yield savings accounts payment.

2. Gather Needed Information and Documents

Get your information ready before you even go to the bank. Most banks will need your basic information like: 

  • full legal name
  • email address
  • phone number
  • address
  • date of birth
  • social security number
  • personal identifications (like passport or driver’s license)

However, some banks require more or less information when you sign up. It’s important to bring documents and identification cards and note your information, like contact numbers.

3. Fill Out Bank Application Forms 

Banks may have different requirements and processes for opening up high-yield savings accounts. Some may be completed in just 5 minutes, and some may take 10 minutes, depending on the bank’s customer service. You can also choose an individual account or a joint account which will have different processes.

The process is especially easier in an online bank that offers the most high-yield savings accounts. However, if you want to open a physical branch, you need to visit personally and expect longer processing of your new high-yield savings account. But, you do not need to be intimidated when you make sure you have everything ready with you. 

4. Start Bringing in Money to Your Account

Some banks may require an initial fund transfer or online transfers to your new account. Other banks may require small amounts as an initial deposit though some may allow funding of your accounts at a later time.

There are also some rules regarding transactions from other banks that may involve transferring your funds. You can transfer funds through a check or credit card as your savings bank will allow. 

Additionally, you might need to verify your account by preparing login credentials or your account number and bank routing number.

5. Download Your Bank’s App

If your bank is not internet-based or is an online bank, you will have to enroll in their online banking app. Your bank should assist you in completing your online enrollment. For other instances, the process can be taken right after your application, but some may take a few days. 

Some banks will send you a mail or e-mail with your account information to help you with online enrollment. 

It’s important to keep your login information as usernames and passwords, secured and accessible. You can use a reliable password manager app on your phone to help you keep your logins safe. 

6. Know Other Features and Turn on Alerts

Prepare a list of other features you can use with your account. You can then sign up for automatic bill payments and e-statements or use the direct deposit feature to add protection to your savings account and checking account. 

Turning on alerts for your online banking app helps you manage and understand your transactions. These alerts can be a text message, a notification from our app, or an email. You can find alerts helpful, especially in maintaining a certain balance, or you want to be updated with withdrawal and deposit transactions in your account. 

7. Connect Other Accounts

It’s common for people to have multiple savings accounts in different banks. Your bank should link to your existing accounts for faster transferring of funds. Aside from the bank you use to transfer your initial deposit for your high-yield savings account, you add more existing accounts.

Linking accounts is beneficial for faster transferring of your funds to accounts that you also use. Consider linking your children’s accounts for transferring allowances faster and other transactions.

Start Growing Your Money With High-Yield Saving Accounts

Saving money can be a challenge, but it pays off a lot, especially when you keep it in a high-yield savings account. You will have more benefits with a high-yield savings account, like less to no monthly service fee. You can also enjoy higher rates.

So it’s important to know your options and pick a bank that would fit your preferences and needs. Do not only focus on the rates but also the customer service and security they offer to your money.

References:

https://www.investopedia.com/how-to-open-a-high-yield-savings-account-4770631

https://www.bankrate.com/banking/savings/how-to-open-a-savings-account/ 

https://www.businessinsider.com/personal-finance/how-to-open-high-yield-savings-account-online-save-money 

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