With the average consumer showing a renewed interest in growing their savings in a low risk environment, high yield savings accounts are becoming more popular. High yield savings accounts, also referred to as high interest savings accounts are a great option for savers who want the opportunity for growth but lack a higher risk tolerance. High yield savings accounts also address liquidity issues that are present with other savings vehicles such as a certificate of deposit. If this type of savings account meets your savings goals you are in luck. There are literally hundreds of accounts across the nation offering a wide variety of benefits as well as varying savings rates. While having so many options to choose from promotes a more competitive environment for the banks offering high yield savings accounts, this can also work against the average consumer looking for the best account to reach their financial goals. Here we offer basic tips on how to find the best high yield savings account to meet your needs.

• Find the best rate- Obviously one of the first things you will look for is the best interest rate available. Fortunately this can be done with relative ease using the Internet. There are many websites that do the work for you, narrowing down the list of potential accounts by comparing rates and other benefits, eliminating much of the leg work needed to find the best account. Remember that interest rates do change, therefore it is important to base your decision on other factors besides the interest rate alone.
• Online versus brick and mortar- There are benefits and drawbacks to each type of banking. With online banking you often find better (higher) interest rates due to the fact that online banks do not have the same overhead as brick and mortar banks. Conversely online banks do not always offer the same range of services and convenience that you might find at a local branch. Which account is best for you depends largely on your own unique banking needs.
• Security- Your savings are not automatically safe simply because they are in a bank. Do your research first to ensure your account is FDIC insured and the bank with which you are dealing is reputable and trustworthy.

High yield savings accounts are a great way to save money with a decent interest rate that allows for some grow opportunity while giving the account holder access to their cash without fear of fees or penalties. Any effort made to increase savings will improve both your short and long term financial health.

After declaring bankruptcy, GMAC has re-branded itself as Ally bank, and in efforts to generate new customers, is offering high yield savings account with a rate of 1.73 percent, and an APY of 1.75 percent, as of this writing.

There are several other features of the High Yield Savings Account at Ally Bank which also make it attractive:

• You can open an account with $0
• There are no minimum balances required
• Interest is compounded daily
• All accounts are insured by the FDIC
• No monthly fees

Do remember that the no monthly fees is based on usual practices. If you exceed 6 withdrawals or transfers within a statement cycle, you would be charged $10, and if a deposit item is returned, there is a $7.50 fee. Don’t be put off by the 6 withdrawal or transfer rule, that’s actually mandated by federal law, and all savings accounts have it.

But as far as minimum balances and normal use of the savings account, there are no hidden fees, which can give you peace of mind in contrast to other banks’ High Yield Savings Accounts which many times penalize if you drop below a required amount.

In contrast to most other large banks, this is a great interest rate and deal, as I couldn’t find a better savings rate for a no-minimum bank in America.

Allstate Bank’s high yield savings account features a current yield of 2.75% APY, subject to change on a weekly basis. The details for opening and maintaining your High Yield Savings Account with Allstate Bank include:

• Opening your account with a minimum of $100
• Keeping a minimum of $500 in your account at all times in order to avoid a $4 per month fee
• ATM card with reimbursements for using other banks ATM’s for up to $6 per month
• Interest is compounded daily and credited to the account on a monthly basis
• You cannot write checks from your high yield savings account balance.

Currently, Allstate Bank is running a promotion on the High Yield Savings account, where new customers can earn an additional 1.25% for 90 days on balances in the high yield savings accounts. The combined yield for the standard 2.75% and the promotional 1.25% gives you a 4.00% APY for the 90 day promotional term.

It is unknown whether the bank will perform a hard or soft pull of your credit when setting up your account, but they will do a credit check. Accounts can be opened at a local Allstate branch or mailing in the application with your check for deposit

Once your account is open, you can make deposits via Allstate ATM’s, direct deposits, ACH transfers from other bank accounts, or through the mail. Withdrawals can be done via a debit card (if you qualify for one, determined by your credit history).