Dec 06 2008
Make Extra Money with High Yield Savings Accounts
One of many great things about the Internet is how it has made high yield savings accounts widely available. You no longer have to settle for the measly 0.5% interest that your local banks offer. There are many online banks that will pay you 3% or more on your money. Making them even better is the fact that most of the have low minimum balance requirement to open and maintain an account. These accounts are FDIC insured so they are as safe as your local bank.
Probably the best known of these high yield savings accounts is ING Direct . Their account currently pays 2.75% and you can open an account with as little as $1. Even though ING pays much more interest than most local banks there are plenty of online savings accounts that pay even higher interest. For example, FNBO Direct currently pays 3.25% and can also be opened with just $1.
Why do they make the interest rates so high? I’m a bit skeptical about this, can you explain how they do this please?