When you finally begin setting money aside, you might think that just leaving extra cash in your checking account is the best way to save. However, there are better ways to earn more money on the money that you are keeping in the bank. Savings accounts are popular, but how do you choose the best savings account? Where can you go to learn all about the different types of accounts you can choose from? Here are some guidelines for choosing the best savings account for you and your needs:
Minimum Balance: Many savings accounts require you to maintain a minimum balance. If you don’t meet the minimum balance requirement, you may be required to pay a monthly fee to keep the account open. Try to find a no fee savings account or an account with a nominal fee so that you can keep more money in your pocket.
Interest: Once you have found a savings account that satisfies you, you’ll then want to be sure that you are getting the best possible interest rate available. Interest rates can be compounded on a daily, weekly, monthly, quarterly or annually. Ask questions to make sure you are getting the best possible interest rate available and compare the interest rates being offered by different accounts and banks.
Getting the best savings account for your needs will take some research and comparison shopping. Make sure to thoroughly investigate any of the options you are considering before you start stashing away your savings!