Comparing Savings Accounts
Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Savings Accounts and other Financial Planning topics.
What should I compare in savings accounts?
Before you put your money in a savings account, you should conduct a savings account comparison. But what, exactly, are you comparing when you look at multiple accounts and compare them?
- Rates. The first thing you should consider when conducting a savings account comparison is the rate being offered by each bank. The higher the interest rate, the more you will earn on your money.
- FDIC Insurance. Next, you need to make sure that each of the savings institutions are FDIC insured. FDIC insurance protects you up to $100,000 if the bank should go under while your money is in an account with them.
- Accessibility. You need to be able to access your money, so compare the different options the bank gives you for accessing your money. Cash withdrawals and ATM availability is important. Make sure the banks each have a large availability of ATM machines so that you don't have to worry about using another bank's machine and paying fees.
- Fees. The earnings you realize from the rates your bank pays will be offset by the fees your bank charges. Compare the annual, monthly, and transaction fees of each bank so you can ensure that your fees don't outweigh your interest.