Tips on finding the best savings account
Savings accounts don't pay a high rate, so finding one that gives you the most return on your money is paramount. But don't be drawn in simply by the rate. To find the best savings account, also consider customer service, convenience and fees associated with the account.
When looking for the best savings account, you will need to do some homework. That means visiting or calling the local banks to get their rates and fees. All banks have FDIC insurance, but the features of their savings accounts can differ. For instance, the fees and minimum balances for savings accounts may be different from one bank to the next. Keep in mind that banks all have their own requirements for opening up a savings account and may reserve the best savings account rates for customers that have a checking account with the bank.
As you look for the best savings account, you'll also need to search online for the rates being offered by Internet-only banks. Typically, Internet-only banks will pay a higher rate on a savings account because they don't have the overhead costs of brick-and-mortar branches. If you go the online route, make sure you don't have to pay a fee to transfer money to the account. Check to see if they have a network of free ATMs in your area. After all, if you are hit with fees every time you take out money, it could negate the better rate.
Savings priorities matterRegardless of whether you go with a local bank or an online-only bank, make sure to prioritize what you want out of the bank to ensure you are getting the best savings account available. Consider if it is important to have a live teller or if you are OK dealing with the bank via phone, instant chat or e-mail. Also consider if you want a savings account that won't charge fees with direct deposit, one that doesn't have a minimum-balance requirement or one that can be linked to a checking account. Stay away from banks that aren't backed by the FDIC. Without that insurance you could end up losing all your money.
Create a news alert for "savings"