Savings Accounts
With a savings account, you’re usually depositing money
you want to leave there for an extended period of time. By
placing your money in a savings account, you’re actually
earning money because the bank will pay you interest on the
amount in your account.
Like with checking accounts, banks may offer free savings accounts, but you need to make sure you understand what “free” really means. With some banks, the account is free only if you keep a minimum balance and if you drop below the minimum balance, your free “savings” account may actually end up costing you money.
Besides the cost of the account, there are some other important factors you need to consider when shopping around for a savings account:
Types of accounts offered
How many different
types of savings accounts does the bank offer?
Monthly service fee
How much will the bank charge
you to maintain your account?
Interest rates
What is the current interest rate
on the account you’re thinking of opening? You might want to
ask about the “Annual
Percentage Yield,” which makes it a little bit easier to
compare banks that compound their interest differently.
ATM cards and charges
Will your account come with
an ATM card and is there a charge to withdraw money from
your bank’s ATM? Also, what is the charge if you withdraw
money from another bank’s
ATM?
Withdrawal limits
Will the bank impose a
withdrawal limit on your account and, if so, what is the
limit?
Availability of funds
How long after you make a
deposit will your money be available to you?
For more information about managing your savings account, click here.
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