Most people have bank accounts that they use to save money for retirement, vacations, emergencies, and more. However, not all savings accounts offer the same interest rates, features, or rules. If you’re looking to open a new savings account, here are five tactics to help you make the best decision.
Check Out the Online Banking Features
Pretty much all savings accounts can be accessed online now, but they don’t all have the same features. For instance, some banks allow you to categorize expenses and then export them to a budgeting program. Others let you transfer money to other bank accounts with a simple online form. Determine what online banking features you need from your savings account and then make sure you get one that can accommodate.
Watch Out for Withdrawal Restrictions or Minimum Balance Amounts
There is no limit to the amount of restrictions some savings account have. Some banks require you to maintain a minimum balance while others go as far as putting restrictions on the amount of money you can withdrawal at a time or the frequency at which you can make withdrawals. If you have plans for the money you’re saving, make sure that you can access your money when you want to and need to.
Opt for an Online Bank
The high interest savings account Discover has to offer is 0.80% with interest compounded daily. The national average is only around 0.20%. That’s why you should do your research and see what is available before opening a new account. Online banks like Discover are great because they don’t have the same overhead as traditional brick and mortar banks, so they can offer higher interest rates to customers.
Keep the Banking Fees to a Minimum
Another thing to look for in a savings account is no annual or monthly fees. These types of banks may lure you in with better interest rates, but then you end up getting less money in the end because of the fees. You should watch out for this on credit cards and checking accounts, too. Always read the fine print and know what you are signing up for.
Look for High Interest Rates
Typically, the more money you have, the higher interest rate you can get from your savings account. If you have over $25,000, you should look for a savings account that offers higher interest for higher balances. Or at the very least, open up a money market account. Typically, you can find bank accounts that raise their interest rates at $50,000 and $100,000 intervals. This is a great option for people that are saving for retirement in a non-traditional way.
These are just a few tactics to get the most out of your savings account. However, the most important thing you should worry about is your interest rate. The high interest savings account Discover has to offer is definitely the way to go because it is five times the national average.