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Writer's pictureHarry N. Stout

65- Cash Tips: Setting Up a High Yielding Bank Account

Updated: Jan 15, 2021


Many times, we look at our monthly cash budgets and try to find ways to make ends meet. We look to increase our cash flow by focusing solely on saving money on expenses by spending less, changing vendors, or eliminating certain activities or goods. What is not done as often is to look for ways to increase cash inflow. The best way I have found to do this is to set up a bank account with an Internet bank.


These accounts earn up to 5 times the rate of interest offered by the bricks and mortar banks or about 1.7% as of the writing of this post. Accounts offered by these banks are covered by Federal Deposit Insurance Corporation or FDIC guarantees. You can find out where the best deals are by doing an internet search or going to certain services such as bankrate.com.


How To Set Up An Account

In contrast to accounts offered by the bricks and mortar banks, the accounts offered by the Internet banks usually have no fees or minimums to open an account. These accounts are easy to open and usually have just four easy steps to set up. Most times, this takes just a few minutes to do as long as you have your information right at hand. These steps include:


Step 1: Gather Your Information

You will need this information for both primary and joint applicants:

  • Social Security Number

  • Email Address

  • Home Address

  • Phone Number

  • Date of Birth

Step 2: Submit the Application

Choose the type of account you want to open, either a checking, savings, or certificate of deposit and apply online or by phone.


Step 3: Receive Electronic Confirmation

You will normally receive an online and/or email confirmation when your application is approved. Most Internet banks also send you information on all the products and services they offer as part of this on-boarding process.


Step 4: Fund Your Account

You can then fund your account either by linking your current bank account or by mailing a check. Most all the Internet banks allow you to start earning interest on the business day they receive your deposit.


Why You Should Act

Internet accounts allow you to earn much or higher rates of interest right away, are easy to use, and can easily be integrated into your checking and savings process. The net result is that you will earn more interest income on your cash.


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