There are many things to look out for when you are choosing a savings account, and to make sure that you are investing in the right account, here are some of the things that you should look out for:
1. There Should be No or Few Monthly Fees
According to the American Bankers Association, 45% of Americans pay maintenance fees for their checking accounts or other fees in a typical month. Get an account that does not require you to pay a monthly fee. If you do, you will be spending more than saving up on money, and the money that you could have saved on the monthly fee could be used elsewhere when you need it. If you don’t find a savings account that offers a no monthly fees advantage, then go for a savings account that charges a small amount of fee.
Some banks allow you to avoid this charge in return for you to keep your account and savings in one place. However, it is recommended that you keep your savings account and checking accounts in different banks, so you can avoid the temptation to take out more money to spend.
2. Check for the Interest Rate
You need to seek out the best interest rate to make your savings worth the wait. Note that the rates that are advertised are only the introductory rates or bonus rates. Bonus rates are the interest rates that are only applicable under certain conditions, and the introductory rates are the bonus rates that are applicable for a certain time being, after which they revert back to the base rate.
3. What Features are Available to You?
In a savings account, it is important to note which features you can use, such as online security or account design features. These elements matter a lot when you are using a savings account, so keep an eye out for the exact features that will provide you the best value for your account.
4. Know if Your Savings Account Offers Free Transactions and Fee Rebates
Many people might miss to add this very important feature on their checklist while choosing a savings account. It is vital to know if the account you are considering offers you free transactions; if so, how many. In addition to this, you would also need to know if fee rebates will be provided to you.
5. See if You Can Get Sub-Accounts in Your Savings Account
We all have different things to save up on at the same time. If you can allocate money to different sub-accounts that are specified to save for that goal, it will be easier for you to manage your savings more easily. There are many savings accounts that provide you the chance to create sub-accounts, and assign each sub-account for a different goal. This way, you will know how much more you have to save up on for a specific goal like an upcoming vacation, or a new home.