Everyone wants to get the best return on their money as possible anytime they open a savings account. This is the key reason behind the increased popularity of the high interest savings account, especially with the way in which the world’s markets have become so unpredictable and volatile in the past couple of years. It obviously logical as to why an individual would open a high interest savings account, but the question that oftentimes arises is “are they safe?” Naturally, you want to choose an account where you will earn the best interest but you also want your money to be safe.
In the United States, the FDIC (Federal Deposit Insurance Corporation) guarantees the safety of your funds in your high interest savings account of up to $250,000 now. Currently, there are nearly 8,000 financial institutions in the US that the FDIC insures deposits in. Up until 1989, the FSLIC (Federal Savings and Loan Insurance Corp.) used to insure savings account deposits, but it was abolished by the FDIC. Now the FDIC handles the guaranteeing of deposits at all financial institutions that are insured.
If you live in the UK, your funds are protected by the Financial Services Compensation Scheme or FSCS. Your money is guaranteed for up to £50,000 for a single depositor and up to £100,000 for a joint account. In any event, this is a testimony to the safety and security of your funds so you have the peace of mind knowing that the only risk involved is if that bank or financial institution goes belly up or fails. It follows then that you should find out if the high interest savings account you are considering is insured by either of these corporations.
High interest savings accounts can be found literally anywhere in the world today. A quick search online will reveal the numerous banks and financial institutions that are out there and offer high interest savings accounts. The advent of the internet has made it extremely easy to not only search for these financial entities but to research them as well. I typically advise people to research 10 to 12 of these companies while formulating their decision on where to open their high interest savings account. Make sure you read all the fine print as well as privacy and security statements. Also, pay attention to their Terms and Conditions or Terms of Service.
