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Successful investing is very simple—you just make more money than you lose. A high-yield investor savings account will look for the most profitable assets to increase your wealth rapidly. If you’re considering opening one, here is what to look for in a high-yield investor account.

High Risk = High Reward

All investors want to earn profits, but the reality is that the primary way to gain "high yields" is to invest in "high risk investments." Life is about putting in the hard work to earn your rewards. Bankers earn their profits by investing in high-risk assets. Let us use a concrete example to show this reality: the 2008 sub-prime mortgage crisis.

During all of the 2000's, banks were making "No Income, No Job and No Asset" (NINJA) loans to high-risk individuals charging them high interest rates. As long as the debtors could keep making their mortgage payments, the financial institutions were making good profits. It is well known, to the point of being a cliché, that high risk investments can yield high rewards. All high-yield savings accounts will invest in risky assets where the creditworthiness of the debtor may be suspect.

What are the High-Yield Account Features?

Nowadays, you can consider account investments with different high-yield parameters. Determine your own risk tolerance and match it to the best high-interest investor account. Do you understand what makes each of those assets profitable?

Review the account terms and conditions for "required initial deposit," "rate of interest paid," "minimum balance required" and "maintenance fee." Is there a minimum balance required to receive the promised interest rate? Will you have the ability to write bank checks against the account? Is there a limitation on how many deposits, withdrawals or transfers you can make during annually? This last factor could be a very important issue, if you have an emergency or the market changes dramatically.

Proper Risk Management

Investors should also confirm if the high-yield savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). The trade-off for earning a high rate of interest is the loss of direct access to your money for a period of time.

Past performance, however, is not necessarily indicative of future results. All successful financial trading experts have an "exit strategy" or "stop-loss." What is your plan for exiting the high-yield investor account? It is wise to set a limit for losses that are acceptable before you open the account; this is the most objective time for setting performance benchmarks.

Compare Unit Investments

The danger of high-risk investments is that they can deteriorate very quickly. When individuals or nations miss a payment, they are penalized with additional charges, higher interest rates and an accelerated repayment schedule. Let us look at the case of Greece, which is considered a high-yield investment because its sovereign bonds are rated as junk. In 2008 and 2012, Greece missed important debt payments. The result was that Greece was charged penalties, given higher interest rates and forced to make more frequent payments. In fact in the summer of 2015, Greece was making large repayments every week. The danger is that Greece's bad situation will become worse and it won't be able to make any payments whatsoever. The high-yield investor account can become a liability when a debtor defaults or goes bankrupt.

High-yield investments are like walking a high wire. You will want the entity to have higher repayments, but still be able to make them faithfully. This can be the difference between profits and losses. Make sure to find the best asset that can walk the high wire and not fall. For some investors, the high-yield savings account is ideal. High net-worth clients can store their money in these accounts and benefit from the wisdom of proven financial experts. Find the best high-yield\high-risk savings account that fits your needs.

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