Savings account opened by an individual is maintained by the credit unions, banks and other financial organizations. Money that is deposited in these accounts reimburses interests. This money cannot be used openly by writing a check. Savings account can be operated only by the account holders. These saving accounts offer better rate of interests to the account holders. So, the individuals must compare the rate of interests offered by different institutions and banks to have better profits. Sallie Mae savings account and American Express savings account offers better rate of interests to the account owners.
Sallie Mae: Child’s education savings and retirement savings are of the primary importance to the parents. Only a few percent of parents are able to meet their children’s college savings and retirement savings. In order to help families to save money for college or other important goals Sallie Mae have announced new saving offers like FDIC insured, high-yield online savings account, deposit certificates with competitive interest rates with no monthly fees and other ways to earn money through rewards. Sallie Mae also provides more offers to the families to invest more amount in higher education and for life goals.
Sallie Mae charges no fee to open savings account and it also charges no monthly fee. It offer an annual percentage rate [APR] of 1.35%. Account holders can earn more by signing up for Sallie Mae’s rewards program that provides them to earn money back on eligible purchases from different grocery stores, online retailers, restaurants and gas station. A minimum balance of 10 dollars is required to transfer automatically in to savings account after purchase. The account holder may qualify for a 10% of annual rewards if the savings account balance is 5000 dollars or more and the monthly automated savings is of 25 dollars or more.
American Express also provides high-yield savings personal savings account offer. Now it received permission from the FED to receive financial aid from the Federal Reserve and also to take deposits from the savers. It also offers an annual percentage [APR] of 1.30% and is 5% lesser than what Sallie Mae offers. It also offers no minimum deposit to open a savings account but the customer should have at least one dollar in the account to get interest. It offers no monthly fee and is insured up to 250,000 dollars by the FDIC. It verifies account ownership by using trial deposits. Once the verification is completed customer can link American Express savings account to other five external bank accounts.
Interests are credited every month for the savings account. Not only has the savings account American Express also provided other new offer like CD products with maturities ranging from 3 months to 5 years. The annual CD rate is 1.50 percent and 2 year CD rate is 2 percent. American Express education account provides tax free earnings. 2000 dollars per year can be deposited until the child gets 18 years of age. These funds can remain in the account until the individual is 30 years old and these funds can be taken out tax free and penalty free if they are used only for the individual’s education purpose.
The main aim of the individual is to save money with good interest rates. So, Sallie Mae and American Express both announced their new offers on savings account to the customers. Among both Sallie Mae has announced 5 percent more annual interest on the money deposited in the savings account than American Express. It offered more benefits to the parents for educational and retirement savings. It also offered reward programs on eligible purchases from many grocery stores and gas stations. American Express also launched new CD product offer with different interest rates. So, an individual should make a better survey on different bank and institution offers before opening a savings account.