5 Tips for Choosing the Best Savings Account for You
It’s easier to take the default savings account your bank offers. We get it, but is that the best option?
Thanks to the Internet, we have virtually endless options for banks and savings accounts. While endless options sound like a benefit, we know you can feel overwhelmed and may have no idea where to start.
If you don’t know where to begin, you might choose the savings account with the best marketing tactics. But, of course, a bank with a good marketing team doesn’t always offer the savings account with your best interests in mind.
We’ve put together our top tips for discovering the best savings account for you.
Take a look at your local banks.
Big banks have the ability to raise rates at a slower pace because they have the revenue to support it. Small local banks, however, raise interest rates faster because they want to attract new business as often as they can. This option is especially suitable for those who prefer having a brick-and-mortar bank to visit. Online options won’t provide the face-to-face customer service you might be looking for.
Research online-only bank options.
Online-only banks don’t have the overhead of brick-and-mortars because they don’t shell out the funds to run local branches. You’ll see their savings come back to you in the best way—higher interest on your savings. If you can live without a physical bank to walk into, online banks could be your best option. Consider also that as technology advances, online banks are able to offer the level of customer service you’ve become accustomed to in your local bank branches.
Read the terms and conditions.
As we mentioned, bank marketing can draw you in even when it’s not the best deal. Read the fine print before you commit to a new savings account based on rate alone. The rate could be subject to having a certain amount of money in your account. There could also be extra fees that lower the benefit of that high interest rate. Or, the account could have a small withdrawal threshold that limits your access to your money when you need it. These are all examples of what could happen. Take the time to review what you’re getting yourself into before going through the trouble of opening an account or moving your money.
Decide how much you’ll add to the account.
When you’re reading the fine print, you’ll find that some banks only offer a high interest rate when you invest a certain amount. Additionally, if you don’t have sufficient funds to meet the bank’s requirements, they could charge you a fee. It will be extremely beneficial to know how much you’ll be investing when shopping for a new savings account.
Don’t feel stuck in the account you choose.
You might see that the savings account you choose doesn’t live up to your expectations or the expectations the bank set for you. New banks will open and offer competitive rates, and your current bank will change its terms often. Make a point to research savings accounts regularly to ensure you’re getting the best return possible on your investment.
Southwestern Investment Group keeps our clients’ best interests in mind, always. We can guide you to the right savings account to reach your financial goals.
Contact us today to take a holistic approach to your financial future.
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