How To Get The Best Savings Account
If you were to drive to your local banks and inquire about a savings account, you would be surprised at how much interest they are paying these days. The interest rate is so low that if you were subjected to any types of bank fees throughout the year it would wipe out any interest earned. The key to understanding how to get the best savings account is all about doing your research online. Here are a few things to consider to help you find the best place to put your savings.
The internet makes it simple to compare the rates of several banks with the click of a mouse. There are several websites that will compare the current rates of several banks, allowing you to see at a glance which bank has the best savings accounts. While it is important to check the banks interest rates, it is also very important that you look for a bank with the lowest fees too. If you were to choose a bank with a high interest rate only to find out that they charged large fees to maintain the account, you would not be putting your money in a position to grow.
One of the reasons you must consider the bank fees is because they do have a variety of them that could be draining all the profits you make in the account. Check to see if the bank has a low minimum balance fee associated with the account or if you can maintain any balance without a fee. This way if you needed access to the money in an emergency you would not be subjected to paying a fee just to borrow your own money. Look for a bank that has no fees for minimum balances or for keeping the account at a certain level each month.
Check to see if you are being charged to make deposits and withdrawals. Many banks charge a small fee to add or even take out money, this is not where you want you money to be growing. These banks are usually the big local branches who have a laundry list of fees they need to charge in order to keep that bank up and running. Consider choosing a bank that only does business over the internet. These banks have no stores, no insurance, no taxes, and minimal staff. They then pass on all those savings to the customer by offering zero fees on maintaining an account. Many times these internet only banks can also offer a higher interest rate because they have little in the way of overhead to maintain the bank.
Once you find a bank online that has no fees and a decent interest rate, you simply open your account and submit your deposits either by mail or by electronic transfer. These are all free to utilize and your money will grow at a higher rate under the protection of the rules that govern all banking institutions. Your money up to $100,000 is protected from fraud just like it would be at your local bank.
