Too often people put their short term savings in their checking account and don't earn any interest. This is a huge waste of money and passive income. While interest rates are not that high, you are just throwing away money by not putting it into a high interest savings account. That is why find the best savings account is crucial.

These accounts are also important for emergency funds. You never know when you might fall onto hard financial times. You could lose your job or have a large expense hit you by surprise. By building up an emergency fund in a savings account you can alleviate some of this risk

Finding the best savings account

There are two places to look for the best savings account. You can research your local banks and credit unions to see who has the best or you can find them at online banks. Determining whether an online bank is appropriate for you requires you to study how you need to do your banking. Many people feel the need to have a brick and mortar bank to visit. Others are happy to do all of their banking online.

For most Internet users and computer users an online bank is perfectly fine. Computer users are used to using their computers to get things done. Typically this also translates into enjoying the online banking experience.

What should you look for in the best savings account?

- Low minimum deposits to open - You need to find a savings acount with a low minimum deposit requirement to open. You don't want to have to maintain a large balance all the time in your savings account.

- Low minimum deposits - If you want to be able to deposit $10 into your savings account because that is the amount you can afford, you should be able to.

- High interest rates - Obviously the higher the interest rate the better. The good news for you if that there are lots of high interest rates savings accounts out there.

- The time it takes to withdrawal funds - If you need quick access to your money, you want to make sure that you can withdrawal the money quickly.

Another key thing to look at when finding a savings account is the bank's checking account program. Often you will want to have a checking account at the same bank that you have your other account with. I find that people too often overlook the checking account options before deciding on a high interest savings account.