When you’re looking to open a savings account, a few things matter more than others. How much interest can you earn? Look for the best high-yield savings account. What types of fees will you pay? Will it be easy for you to access your money when necessary? These are all questions that any prospective saver should ask themselves before making an opening deposit. So let’s dive in and see what makes the best savings account!
Minimum balance requirement
The minimum balance requirement is the minimum amount of money you need to keep in your account. This is a pretty standard feature of most savings accounts, but just because it’s common doesn’t mean that it’s universal. Some banks won’t require you to keep any money in your account, while others may require hundreds or thousands of dollars before opening an account.
Account fees
When it comes to fees, there are two types of transactions you’ll have to watch out for: those that have a fee associated with them and those that don’t.
For example, if you want to deposit a check into your account, you will likely be charged a small fee. Likewise, if you want to withdraw cash from an ATM or make a purchase at the store with your debit card and pay via debit card instead of cash (which would require no fee), then there will also be some sort of charge attached. Some banks charge monthly maintenance fees while others don’t; this is something else worth considering when comparing different accounts’ terms and conditions.
Withdrawal penalties
Avoiding withdrawal penalties is as simple as picking the right savings account. First, you’ll want to look for an account that doesn’t have a penalty period. Some banks will offer this option in their terms and conditions. If your bank isn’t one of these, you should consider an institution that offers unlimited ATM withdrawals nationwide (not just those inside their own network).
This will allow you access to money without any restrictions or limits. Plus, most big banks now offer free checking accounts with no minimum balance requirements, so if yours still needs to offer this perk, there’s always room for improvement!
Monthly charges
A bank’s monthly fees for its savings account is another thing to consider when choosing a savings account. Monthly maintenance fees are often charged on accounts with balances below a certain amount, which can be waived if the balance exceeds the requirement. Some banks also charge you if you don’t meet other requirements like maintaining an average daily balance or frequenting the bank’s branches.
Online banking
Online banking has many advantages over going into a branch to make transactions. For example, you can access your account from anywhere and at any time. You also don’t have to wait in line during banking hours, and you can quickly transfer funds between multiple accounts without visiting the bank. This makes online banking much more convenient than going into a branch. Lantern by SoFi experts says, “It generally takes about 10 minutes to open a high-yield savings account online.”
This can be a helpful guide to help you get started in finding the right savings account for your needs. Of course, you should always consider your personal finances, but these tips can help anyone find an account that will serve them well.
