What Is The Best Savings Account

The best savings account is hard to determine because it comes down to a variety of options that you might not think about considering. It would be easy to say that interest rates are a determinate of the top spot, but the interest rate is not the only thing to consider when you are thinking of where to put your reserve money. No, banks have more to offer you then just a high return, although return is important it is not the only deciding factor you will need to take under consideration. Before you jump at the first astounding interest rate that comes your way take the time to examine the other features and costs that will also affect your bottom line.
Picking The Best Savings Account
Interest Rate - Of course, the first thing you will notice when you look at account offers is the interest rate. These are usually highly advertised in big, bold print so they are impossible to miss. What is easy to miss are the caveats that are in significantly smaller print underneath the rate. Make sure you also pay attention to that small print. High interest rates are often introductory offers that last for a limited amount of time, so make sure the standard rate is also competitive because that is what your rate will revert to once the introductory period expires. Often those advertised high rates are only available if you keep a significantly high minimum balance or make a minimum deposit.
Fees - Fees are absolutely important when you are trying to choose the best savings account for your money. There are plenty of on line banks that are willing to offer you free account keeping services if you are willing to fore go traditional bank practises like paper statements and counter services. Traditional banks also have some low fee options that may be worth the cost if you are getting excellent services and a good rate. Look specifically for annual fees and maintenance and account keeping fees.

Limited Transactions - A lot of banks limit the number of transactions you can make per month in order to reduce the cost of maintaining your fund. Usually this is not an issue since the whole point of it is a rainy day fund that you are not making loads of transactions on. Just make certain that you get enough transactions to make regular salary or other types of deposits and that you can make at least a couple of withdrawals each month should the need arise.
Minimum Balances - Even if you anticipate keeping a significant chunk of change in your rainy day fund you should note what the minimum balance is for earning interest and avoiding fees. While some banks do not require a minimum balance to keep the account open they might have one for earning the maximum interest rate. If you want to maximise your profits stick with a bank that has a minimum balance that you know you can maintain in the long term.
Access - Getting to your money when you need it is clearly important. One of the drawbacks to some on line accounts is that the only access you have is via the web or over the phone. If you do not feel like this offers you the security that you prefer then a traditional bank with counter service might be worth some additional cost or a slightly lower return rate.
To choose the best savings account come up with a list of factors that matter to you. From there you can compare all the different options and find the one that meets all of your needs without sacrificing too much interest or paying high fees.

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