Smart Savings
_Many people assume that when they put their hard earned money into a savings account, a dollar saved is a dollar earned. Unfortunately, this isn’t always the case. The fact is, many of the largest, most popular banks have fees built into their savings account structure that are designed to make the bank rich, not the consumer.
This can be a frustrating experience, especially if you’ve decided to go the “safe route” and invest your money the old fashioned way. After all, people have told you that just storing your cash at your house can decrease its value, thanks to inflation. But with the rates some banks charge, you would do better to take that inflation hit and keep your money at home.
You are smarter than that. Take charge of your financial investments and choose a bank that will work for you and not against you. Here are some suggestions on what to look for before choosing a bank to handle your savings account.
The Process
If you have never set up a savings account before, you have most likely never sat through a meeting with a banker. Typically, this is a meeting where the banker throws several options at you and you are expected to decide right then and there on what type of account is right for you. The banker will throw out information such as interest rates, fees and balance requirements.
Tip – Do not make your decision at this meeting.
After you have received thorough information and paperwork to back it up, take your options home for review. That way, you can carefully compare some of the following money suckers banks try and pass off on your “savings.”
Bank Fees
This one is the most blatant – there are banks that will charge you a fee simply for having a savings account with them. Steer clear. It should be the other way around.
That said there are banks that will waive the fee if you follow their requirements. These requirements may include things like using their debit card a certain number of times per month or having a direct deposit set up through your employer or maintaining a certain balance. Be certain that whatever you choose will not be a struggle for you to complete. Otherwise, the odds are in your favor you will forget their rules and pay the fee.
Better yet? Find one that will simply hold your savings for free.
Federally Insured
When the economy is shaky, knowing your money is the protected key. Heck that matters even when the economic picture has never looked rosier. Always ensure the bank you are going to keep your savings at is insured beyond the amount you are planning to hold. That way, you will rarely have to worry about losing everything if a bank hits rocky financial waters.
Low Percentage Rate
Remember when we talked about the impracticality of storing your money in your walls? Well, if you’re saddled with a savings account where the interest rate ends up being less than the inflation rate, you may as well be doing just that. As savings accounts are already considered one of the lowest performing investments out there, don’t become a casualty. Choose the savings account that offers the highest rate of return on the market.
The Choice
Remember, when choosing a savings account, you are investing in your future. Don’t let tricky phrases fool you – if you are loaning a bank your money to hold onto, they should be paying you. Invest in the banks that honor what a savings account is meant for and that’s for your hard earned money to be saved.
This can be a frustrating experience, especially if you’ve decided to go the “safe route” and invest your money the old fashioned way. After all, people have told you that just storing your cash at your house can decrease its value, thanks to inflation. But with the rates some banks charge, you would do better to take that inflation hit and keep your money at home.
You are smarter than that. Take charge of your financial investments and choose a bank that will work for you and not against you. Here are some suggestions on what to look for before choosing a bank to handle your savings account.
The Process
If you have never set up a savings account before, you have most likely never sat through a meeting with a banker. Typically, this is a meeting where the banker throws several options at you and you are expected to decide right then and there on what type of account is right for you. The banker will throw out information such as interest rates, fees and balance requirements.
Tip – Do not make your decision at this meeting.
After you have received thorough information and paperwork to back it up, take your options home for review. That way, you can carefully compare some of the following money suckers banks try and pass off on your “savings.”
Bank Fees
This one is the most blatant – there are banks that will charge you a fee simply for having a savings account with them. Steer clear. It should be the other way around.
That said there are banks that will waive the fee if you follow their requirements. These requirements may include things like using their debit card a certain number of times per month or having a direct deposit set up through your employer or maintaining a certain balance. Be certain that whatever you choose will not be a struggle for you to complete. Otherwise, the odds are in your favor you will forget their rules and pay the fee.
Better yet? Find one that will simply hold your savings for free.
Federally Insured
When the economy is shaky, knowing your money is the protected key. Heck that matters even when the economic picture has never looked rosier. Always ensure the bank you are going to keep your savings at is insured beyond the amount you are planning to hold. That way, you will rarely have to worry about losing everything if a bank hits rocky financial waters.
Low Percentage Rate
Remember when we talked about the impracticality of storing your money in your walls? Well, if you’re saddled with a savings account where the interest rate ends up being less than the inflation rate, you may as well be doing just that. As savings accounts are already considered one of the lowest performing investments out there, don’t become a casualty. Choose the savings account that offers the highest rate of return on the market.
The Choice
Remember, when choosing a savings account, you are investing in your future. Don’t let tricky phrases fool you – if you are loaning a bank your money to hold onto, they should be paying you. Invest in the banks that honor what a savings account is meant for and that’s for your hard earned money to be saved.