The largest number on a savings advertisement may apply to only part of your balance, for only part of the year, or only when you complete a monthly requirement. Before moving money, turn the offer into a short description of what your own account would actually earn.
Read the rate and the rule together
Record whether the quoted figure is an annual percentage yield, a nominal interest rate or another locally defined measure. In the United States, CFPB’s APY calculation rules account for compounding and set assumptions for introductory and variable rates. An advertised annualised figure is not a promise that a variable rate will remain unchanged.
Alongside the rate, write the qualifying balance, any maximum balance receiving that rate, required deposits, withdrawal restrictions and the date a bonus ends. Read the fee schedule separately. A condition you cannot reliably meet belongs in the comparison, even if the advertised return looks attractive.
A small example makes the trade-off visible
Imagine two fictional accounts, each holding 1,000 currency units for a year. One earns 30 units before fees and charges 24 units in maintenance fees; the other earns 20 with no maintenance fee. Ignoring taxes and other changes, their net amounts are six and twenty. The larger interest figure did not produce the larger result.
Now add your real behaviour. Will a withdrawal remove a bonus? Does the minimum balance refer to each day, the end of the month or an average? Will moving money take longer than you can accept for the purpose of these savings? Ask the provider to explain unclear wording in writing.
- Use the same starting balance and comparison period.
- Include fees you would actually incur.
- Check deposit protection with the relevant scheme in your country.
- Set a reminder before any introductory condition changes.
Keep the dated terms you relied on. The useful result is not a universal “best account”; it is an account whose conditions fit the way you will hold and access this particular money.