Many financial institutions require a minimum balance to open an account, earn a higher interest rate and avoid fees — or any combination of these things. ... In short, they need to be able to make more money from your deposits than you cost them to maintain your accounts.

Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. After paying for various costs, the banks pay money on savings deposits to attract new savers and keep the ones they have.

There are two main categories of retirement annuities, immediate annuities pay out immediately after first investment and deferred annuity accumulates money over time.

The average account has a measly 0.06% APY (annual percentage yield, or interest), and many of the nation's biggest banks pay rates as low as 0.01%. But there are actually some accounts that pay yields closer to 1%