When it comes time to obtain a savings account, do you know where to look? Or what process you should follow? It may take time to find the best savings account for your needs.
Check out these tips:
Shop Around
You shouldn’t opt for the first savings account you come across if you can help it. There are plenty of options out there as well as plenty of banks and credit unions. Looking around at the different options will help you find the best interest rates, lowest fees, and other benefits.
Even if you already have a savings account, it may be worth it to take the time to shop around again. Just like insurance policies, you never know when you’ll find a better rate. You could be doing yourself and your wallet a disservice by skipping this step.
And don’t forget about the small local banks and credit unions! They may have excellent rates and choices that fit exactly what you’re looking for. You don’t only have to go for the big-name banks.
Consider Your Options
As we covered in a recent article, there are a variety of different types of savings accounts. They include
- Basic Savings Accounts
- Online Savings Accounts
- Certificates of Deposit (CDs)
- Money Market Account (MMAs)
- Student Savings Accounts
It’s important to know the differences between the five to best determine which is best for your situation and money. Not all banks and credit unions will offer all five, so you will need to look around to find one that works for you. There are pros and cons to all of them, so research is needed here.
Check the Details
Once you believe you’ve found a savings accounts that fit your wants and needs, don’t overlook the tiny details. Sometimes banks do a “bait and switch” where rates or fees only last a few months. Some accounts may require no minimum deposit, while others require thousands or tens of thousands. Others may ask that you keep a minimum amount in the account at all times or you will be subject to fees.
The amount you have in the account can also have an influence on the interest you receive. You may have a higher interest rate the more money you have in the account.
Just like shopping around, don’t skip this step. It could hurt your bottom line if you’re not paying attention to these finer details.
Finding the Best Savings Account
No matter what savings account you opt for, the most important thing is to not rush into it. There are more options than many people realize and they could benefit from shopping around, considering the options, and checking even the minor details of what they’re agreeing to.
