How To Choose The Best Personal Savings Account For You
Most people do not know this but there can be huge differences between savings accounts offered by different banks. In the majority of cases we see people choosing the very first account recommended by a friend or family member. This can be a mistake since even them might not be aware of the fact that other better options are available on the market.
The very best personal savings account is the one that offers everything you need while being as secure as possible. Thankfully, it is really easy to compare savings accounts. Just look at the deal offered, the interest rates, and always be on the lookout for the following.
Low Or Zero Fees
You open a savings account because you want to keep your money safe while getting some sort of interest. Most open such an account as an emergency fund. Many banks try to use the accounts like a piggy bank, making customers pay maintenance fees, activity fees, withdrawal fees, monthly fees, service charge fees, inactivity fees and more. They basically want to be sure they take as much cash from you as possible.
Do not accept the high fees. You can choose out of many banks that really want you to be a client. There are banks that will not charge you anything. If you cannot find such a bank close to where you live, at least find those that have the lowest possible fees. Only remain at the higher cost banks if there is a really compelling reason for you to do that, like the loan package you would get for your business.
No Limits For Withdrawals
A really great savings account will not impose such limits on customers. There are banks that add them because checking accounts are those recommended for accessing money on a frequent basis. However, we have to acknowledge the fact that it is still your cash. You should be allowed to access it whenever you need it without any penalties. After all, you never know when things go wrong and you need to make a withdrawal.
People recently remembered that banks can fail, around the crisis between 2008 and 2013. If a bank fails, depositors will be faced with numerous problems. You should not put the money you have in any institution that is not solid and that does not constantly prove it can back claims made. Try to learn about capital ratios, which is a strength measure for the banking industry. This helps you figure out if the bank is strong or not. The Tier 1 ratio should be over 10% for high security.
Protection against a collapsing bank is also possible by only adding as much money as is covered by FDIC insurance. Try to learn more about these limits to see how you can protect your savings account further.
Denominated Currency Option
Another sign that you are looking at a really good savings account is being able to select the base currency, one that is not the main one in your country. For instance, EverBank in USA is a market leader when it comes to savings accounts in dominated currencies. You can open your account in Australian Dollars, Swedish Krona, Japanese Yen, Norwegian Krone and a whole lot more. Customers are not limited to having savings account.
The best thing that you can do is compare all the saving accounts that you can find with banks that would service you. It takes time but you will not end up regretting the decision you make. After you decide on the bank where you want to open an account, be sure you read the entire contract before you sign it so you are aware of all the terms and conditions.