Just because there are thousands of banks and credit unions to choose from, doesn’t mean find the perfect one for you should be hard. With varying deposit rates, fees and minimum balance requirements, it certainly makes sense to shop around and compare. Once you’ve figured out what it is that you want in a savings account, ask yourself these seven simple questions to find the best place to stash your cash.
Is It Easy to Automate My Savings?
Having automatic deductions from to your savings account will not only help you stay on track with your financial goals, but it may save you money in other ways. Banks may offer smaller fees or even a higher interest rate for accounts that take advantage of this free feature.
What Kind of Monthly Fees Are There?
Some banks may charge a minimum balance fee if the balance dips below a certain level while others may charge “inactivity” fees if there are no deposits or withdrawals made after a certain amount of time. Make sure to compare any and all fees. If a minimum balance fee is an issue for you, you may want to consider using a credit union. Credit unions often have smaller minimums and charge less fees.
What Are The Interest Rates Like?
Yes, this one is a no brainer. Shop around for institutions that offer the most competitive interest rates on your savings, and don’t forget to compare fees to find out what you’re really getting yourself into.
Are There Fees For Transactions?
Many banks now charge fees for using a teller for transactions. If you can make a deposit from your smartphone or laptop free of charge, then go for it. Mobile and online banking has never been easier or more convenient.
Can I Access My Cash Easily?
Even you don’t need access to your cash on a daily basis, you never know when the need arises. Make sure your money is accessible by ATM or by transfer.
What Kind of Online Banking Tools Do They Have?
Many banks now offer free savings tools to help you achieve your goals. These calculators and other tools can help keep you motivated to save while showing you how your money will grow over time based on contribution levels and frequency.
Are They Covered by FDIC Insurance?
Make sure any account you use for savings is covered by FDIC insurance. This coverage protects your money up to $250,000 in the event of your bank failing.
Finding a great savings account is not as difficult as it may at first seem. Take the time to shop around and compare all aspects such as rates, fees and overall convenience. Make a savings plan and watch your money grow.
