Too often, a bank savings account is little more than just a place to park your money, and your cash is not generating any return to speak of. If you have only a small amount in savings, and your bank is giving you some free services such as no monthly fee, then it’s probably worth the trade-off. But if you have more than a thousand dollars or so, you should be looking into high-interest alternatives.

The lowest tier of savings accounts is the basic account offered by virtually every bank in the country. Typically, the standard savings account might pay a quarter-percent interest on your funds. Admittedly, this doesn’t amount to much, but you do get some services such as online banking and bill paying, access to ATMs, and a debit card. And if you can find a "no monthly fee" deal, this type of account may be just what you need for day-to-day banking with a low average balance.

However, once you start accumulating a bit of wealth, you can earn five, six, or even seven percent interest on the money in your account, if you take advantage of a bank’s special high interest offering. When choosing an account, be aware that the product offering the highest rate is not necessarily the best one for you. Here are a few caveats to watch out for when shopping for a high interest savings account:

• Some of the highest rates may require you to keep a large minimum balance, so all of your cash is not readily accessible.
• Some of those high rates may be "introductory" only, and your return may go down after the first six or twelve months.
• Some high rates may apply only to the portion of your deposit that exceeds a stated amount. Look for the accounts that pay the high rate "from the first dollar".

In addition, always check the transaction fee schedule. Most of the higher-interest savings accounts will offer plenty of free services, but check first – you don’t want all of your interest to be consumed by ATM fees and monthly service charges.

"Term" deposit accounts are a type of high interest savings account that requires you to lock in your deposit for a set period of time. Typically, a term deposit account will pay a bit higher, but banks have become more competitive in attracting deposits, and regular deposit accounts with unlimited access often pay nearly as much interest as a term account – and you get the benefit of having immediate access to your money if you need it.

An alternative to a standard high interest savings account is a managed fund account, which invests depositors’ money in a well-balanced variety of financial vehicles, such as bonds, shares, and other securities. Access to your money may be more limited, but interest rates may be higher. Beware though, and look for a managed fund that has a secure, low-risk investment strategy. A high-risk managed fund may promise extremely high interest rates, and may sometimes even deliver them, but there is no guarantee.