What is a HISA?
A High Interest Savings Account (HISA) is exactly what its name says – a high interest savings account (imagine that!). Not all HISAs are the same, though. You’ll want to compare the features of the products offered by different financial institutions.
The top factors you need to consider:
Different financial institutions offer different interest rates, depending on the service provided. If the bank has a branch on every corner, stays open on a Sunday and pays its staff to be ready and waiting to answer any question you have, you’re gonna pay for that kind of service in the long run.
Assess your needs and choose a HISA through a bank that best fits you. No one wants to pay for unnecessary services. After all, the entire point of opening a savings account is to save, not spend.
In order to get that amazing rate they’re offering, some financial institutions require that you deposit a minimum balance – and keep it there. If that’s not a problem for you, then you might find yourself a higher rate as a reward.
Again, depending on the service provided, the institution you choose may charge monthly fees – some more than others. If you want unlimited access to your money, you’ll likely have to pay a monthly fee for the privilege.
Most high-interest savings accounts require that you’re a minimum of 18 years of age.
Some financial institutions offer promotional rates to get you through the door. Those rates, however, don’t last forever. Ask for a history of the interest rates delivered on their HISAs and choose an institution that offers great rates long after you open your account.
Want to make more money from your investment? Don’t we all. Some financial institutions compound interest daily – not monthly or yearly. Choose an institution that will give you the most for your money and reward you for regular deposits. It’ll make a difference in the long run.