Finding the Best Savings Account: A Process

Finding the best savings account can be such a pain as many options and offerings out there continue to baffle us with different features and benefits. We hear so much about bank advertisement, with all the sparkles and enticements. But what makes a saving account right for you? Here are some questions we should be asking when opening the best savings account that will work for us.

What are you saving for?

Knowing what you are saving for is the best way to make sure you get motivated to use your savings account. There are some banks with features that you can allocate your savings to a specific purpose. Having a goal in mind can help narrow down the wide field of choices you have when picking a savings account. But if this process doesn’t work for you because you are saving for a long term goal, investing could be a better fit. Savings accounts are great for more liquid savings you might need soon, like emergency funds or home down payment savings.

Does this savings account have mobile banking? Is it easy to use?

In the time of pandemic or any other emergency, such as being in another country, this is one of the most necessary features. With most of us using our phones and laptops, mobile banking has many perks including being able to view your account details, make transfers and deposits, and view statements.

Life sometimes gifts you some unexpected situations and so does expenses. It will also be good to have a fixed amount transferred from your checking account to a savings account to build your savings. You want to make sure that you can easily do this if you decide to have different banks for checking and savings accounts.

What are the fees?

When you are in a situation wherein you are in a bind, there are some instances where you would dip into your savings account. Many banks will have humongous fees when your savings account dwindles. As someone who worked in a popular bank witnessed, many people find themselves with zero balance in the account for not knowing that there is a fee when you dip below your maintaining balance. Don’t settle for a savings account with high and irrelevant fees. Fees eat up your hard-earned money and should be avoided if you want to build a solid savings account. Some accounts will even charge a monthly service fee if you don’t manage the minimum balance requirement, a fee for inactivity, or a fee for excessive withdrawals. The top tip is: Read the fine print every time.

Are you going to keep all your accounts in the same bank?

There are pros and cons for this option. Pro is you can easily transfer money from your savings account to your checking account for emergencies but that is also the downside of it. It is too easy to dip into your savings account even if it is not an emergency like maybe seeing something that you want from Amazon. Looking for a savings account at the same bank where you have your checking account probably isn't ideal. Keeping them at two separate banks can keep your saved money out of sight and out of mind.

What are the interest rates and is this bank federally insured?

Better than have your savings dusting under your bed, you might as well earn from it. You want your money to work for you and earn interest. Popular banks usually give out lower interest rates most of the time. Find a bank that you agree to its policies. Again, read the fine print - if we haven’t stressed that enough.

Why would you need a bank that is federally insured? Well, this gives you another blanket of security. In an event that a bank goes out of business, given that the bank is federally insured, it can give you your money back. Standard FDIC coverage is up to $250,000 per depositor, per issued bank.

Finding an institution to trust with your hard-earned money can be confusing and sometimes tricky. That’s why Carolina Money Minders lets you in on the most simple choice: hiring a daily money manager. Partnering with Carolina Money Minders can be a relief in your busy lifestyle as Daily Money Managers can assist you with your everyday transactions and get in control with your finances.

Contact Carolina Money Minders today!