- 1). Determine which type of savings account you want. When comparing a savings account, it's important to compare similar accounts. A traditional savings account typically offers the lowest interest rate, but requires a smaller opening deposit--$100 or less. A money market savings account usually requires a higher deposit--$500 or more--but offers a much more competitive rate. And a high-yield money market savings account, usually offers the best interest rate, but requires a balance of $25,000 to $100,000, depending on the account.
- 2). Check out Savings Accounts, which is a company that publishes top savings rates from across the nation (see Resources below). You can shop rates for E-Trade, Capital One and HSBC quickly online. There are many financial institutions offering top rates, such as Capital One, which most people consider as a credit card company. You can apply for an account with many of the companies by filling out an online application and mailing or wiring money to your account.
- 3). Compare the best online savings rates from across the country with Bank Rate (see Resources below). They allow you to sort search results by type of account: traditional savings, high-yield money market account or traditional money market account. And if you prefer to deal with financial institutions in your local area, you can enter your zip code to narrow the search results. Once you identify the best savings rate, you can visit the company's website to open an online account or visit a physical branch. To open an account, you will need an opening deposit, typically $100 or more, and your driver's license to prove identification.
- 4). Read the fine print to locate account fees. Savings accounts can have high monthly service charges, up to $25. And if you make too many withdrawals, banks can charge you an extra few dollars for each additional withdrawal. This information should be in the account terms of service. Make sure to read it before making your final decision.
- 5). Make a quick comparison chart. Once you've located the best rates, use Excel or a comparable spreadsheet to compare savings rates. Create a column for interest rate and one for fees. This will allow you to quickly sort and choose the best savings deal.
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