What to look for in a savings account What to look for in a savings account

What to look for in a savings account

Having a savings account can be essential! It's the best place to store your emergency fund or stash your money until you save enough to buy a car. But every savings account is different. Here are some tips you should take into account before opening one!

If you are willing to open a savings account, then you should know that there are some factors you need to consider beforehand. Take note of these steps and start searching for the best savings account.   

What to check before you open a savings account

1. Interest rates: This is the main factor you should analyze while considering savings account options. The thing is that interest rates aren't usually too high in this type of account, so you won't be growing your money in a short period. If you are deciding between two or three options, the best thing would be to go for the one that offers a higher interest rate.

2. Monthly fees: Several banks charge monthly fees to savings account, although in many cases you can keep a minimum balance to avoid those fees. So, while you are searching for the best bank to open your savings account at, check that your options don't involve any monthly fee.

3. Minimum opening deposit: Another factor you should check before opening a savings account is they require a minimum opening deposit. Many banks will ask you for a deposit for opening your account, but you should definitely look for those that don't!

4.Automatic transfers: Search for those banks that offer this feature. This will automatize your deposits from your checking to your savings account and help you save a fixed amount of money every month.

5. Mobile check deposits: This feature will help you avoid going to an ATM or bank branch to deposit your check. Before opening a savings account, ask the bank if they allow mobile deposits. Although it's a rare feature, many banks are starting to apply it.

6. Easy withdrawal: Although you may not be withdrawing frequently from your savings account, you may want to check if you will have quick and easy access to your money. Remember that the Federal regulations only allow a maximum of six withdrawals from your savings account a month.

More Stories