If you have your money in a savings account, you are one step ahead. This means you’ve started to save your money in a safe way. But is it the right account for you?
A study published in 2016 showed that 69% of Americans weren’t putting their money in a savings account, so if you are doing it, you are ahead of most U.S. adults.
But you might not be making the most out of it. Here are some considerations for you to find out if your account is the best option for you.
1- Your bank is charging fees
As a savings account does not pay much interest, banks shouldn’t be charging fees either. But a lot of them do. The most common is the maintenance fee, but it can easily be waived if you keep a minimum amount of money in the account at all times. Depending on your bank, this minimum amount can range from $100 to $1,000.
Another way they charge you is by exceeding the free amount of transactions you get every month, which is usually 6. These transactions can be withdrawals or transfers and they can charge you as much as $10 per each additional move.
As there are plenty of banks that will offer a savings account without these fees, your best shot it to check with your bank and see what they offer.
2- Not enough interest
Savings accounts don’t pay much interest, but some of them pay a bit more and some, a bit less. Higher interest rates are around 1%, so you must know what your current interest rate is so you can make an informed decision.
It's not like 1% interest is going to make you rich, but if it is a bit more than usual, then why not take the opportunity?
3- Online banking options are limited
An important thing to consider when deciding if your savings account is the right for you is whether or not your bank offers a convenient online platform.
If the platform is user friendly and allows you to perform a lot of transactions without you having to actually go to a branch, that’s a plus.
You should be able to log into your account from your computer or phone and quickly transfer money between your accounts. Some banks even offer the option of mobile deposit, which allows you to take a photo of a check and deposit it in your account straight away.
As the financial reward you get from a savings account is very little, you should make sure that they are not causing you any inconvenience. Keep this things in mind when deciding and always check with your bank!