When it comes to saving, there are many different factors to consider such as the institution to open the savings account, interest rates, account fees, minimum balance requirements, and account limitations. Although the choice is ultimately yours, there are some helpful tips to consider in selecting the best savings account for your requirements. You need to start saving now.
Regulation
Is the institution offering the savings account regulated? Even though unregulated entities may offer lucrative deals in terms of interest, products offered, and fees, the challenge is that some of the contract terms may be unenforceable in terms of default. To avoid losing your savings to bogus savings clubs it is important that the institution has sound regulation.
Compare interest rates
Be sure to compare interest rates from different banks and financial institutions to ensure that you get the best deal. A higher interest rate means more money in your pocket. Ideally, the amount of interest you receive should be higher than the inflation rate so that your money grows realistically.
Consider fees
The saving accounts levy charges on these accounts. These may include monthly fees, ATM fees, taxes, or other fees. In choosing your savings account be sure to incorporate all these charges as they weigh down on the returns.
Minimum balance requirements
Some savings accounts may have a minimum balance requirement that must be maintained at all times. If your account balance falls below this threshold you may be charged a punitive fee. So in selecting your account be sure that you will be able to sustain balances above the minimum threshold.
Account limitations
Some savings accounts may have limitations on the number of withdrawals you can make each period. If you anticipate to be making frequent withdrawals then you should select no or low withdrawal limits.
Accessibility
How easily can you access your money? Some savings accounts offer online banking, mobile banking, and ATM access but some don’t. If you want to access your money quickly and easily, be sure to choose an account with the features you require.
Cross Product benefits
Some financial institutions offer their Savings Account holders cross-product benefits. This means that if you already have a Savings Account with the financial institution, then you will get special benefits and offers in case you decide to open another account with the same institution or want to avail of any of their other products such as insurance and loans.
Deposit Protection
. Is the Financial Institution coved by deposit protection schemes? As an example, The Federal Deposit Insurance Corporation (FDIC) insures deposits, examines, and supervises financial institutions for safety, soundness, and consumer protection. Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, and per ownership category.
Here are a few of the best savings accounts available today:
- Capital One 360 Performance Savings Account offers a high-interest rate, no monthly fees, and unlimited ATM withdrawals worldwide. The institution is regulated by the Financial Conduct Authority.
- Discover Online Savings Account offers a high-interest rate, no monthly fees, and unlimited ATM withdrawals worldwide.
- Charles Schwab High Yield Investor Checking Account offers a high-interest rate, no monthly fees, and unlimited ATM withdrawals worldwide.
- Vanguard Federal Credit Union Savings Account offers a high-interest rate, no monthly fees, and unlimited ATM withdrawals worldwide.
These are just a few of the many great savings accounts available today. Be sure to compare rates, fees, and features to find the best account for your needs.
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
