Understanding Financial Considerations

Posted on: 13 December 2019

Are you looking to move your money form under your pillow to a savings account, or just switch from your current bank? If so, you will be comparing many different types of savings accounts and trying to figure out which one is best for you. Here are some things to consider to know that you found a good one. 

Look for Sign-Up Bonuses

Every bank is looking to win your business, and they do that by offering sign-up bonuses. It is possible to get a few extra hundred dollars by opening an account with one of these bonuses. Make sure that you fully understand what the offer is before you accept it. For example, they may have a minimum deposit required to open the account, and then you are required to keep that balance for a certain amount of days. Some banks give you the sign-up bonus up front, while others will give it to you after the terms have been met. 

Understand the Fees

One thing you'll want to do is understand all the potential fees that come with having the savings account. For example, you may have a daily balance threshold that your savings account must be over or a limited amount of withdrawals you can make each month. You'll want to know these fees before you are hit with them to avoid making some costly mistakes.

Know the Interest Rate Options

Many savings accounts do not offer much in terms of interest rates, but it is still worth comparing them. You'll find that online-only banks will have a higher interest rate than typical brick and mortar bank locations, which is due to not having overhead cost of a physical location. However, you can often get a higher interest rate from your bank by putting some money into a CD (Certificate of Deposit) rather than your savings account. You will not be able to withdraw your money for a certain period of time without facing a penalty, but it is still a good option if you have an emergency fund in cash or in another account. 

Learn About the Mobile App 

Most banks these days have mobile banking, but not all are created equally. Look for features that you'll use frequently, such as mobile check cashing and online transfers. You'll be making fewer visits to your physical branch, which can save you a lot of time over the years.

Reach out to a local bank in your area for more information about their savings accounts.