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will be higher because it is less expensive to maintain. In most cases the interest is free of taxes if it doesn't reach a certain amount. This depends of the country where you live.

Term savings accounts or CD's give mostly a higher interest rate. In this case you will put your money away for three months, 6 months, 1 year or even longer. If you need this money earlier there is a penalty fee, so you need to be sure you can afford to miss your money for this term otherwise you will lose the benefit of the higher interest.

Regular savings accounts give you also a higher interest rate than the traditional savings account because you need to save every month at least a small amount. Mostly these kinds of savings accounts also give you once a year a bonus which depends on the profit of the bank.

A money market account is another possibility you can consider for a higher profit of your savings. These accounts require a higher minimum deposit for opening an account but the interest rate will be higher. You can make as many deposits as you want but there is a limit in the quantity of withdrawals which you can do in one month. It is also necessary you keep a minimum balance in your account.

With online banking it is easy to take a savings account in another currency than the one of the country where you live. The interest rate can be much higher but a drop in currency value can lead to a terrible loss.

In my opinion the savings account of "Rabobank" is the one which gives you the highest interest for an online savings account but it depends on the country where you live for making the best deal. Do research and compare regularly the interest rates for finding the best interest rate for your savings account and choose for the one which fits you. The most important factor to consider is: do you need immediately access to your account or no

Learn more about this author, Erik Van Tongerloo.
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