Bank Fees vs. Savings Rates

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 when looking for savings accounts?

Bank Fees vs. Savings Rates

When you compare savings accounts and rates, don't neglect to compare the fees charged by the savings institution.

Watching Out for Fees
Many banks and savings institutions charge monthly fees if you allow your savings account balance to fall below a certain amount. Still others charge ATM fees if you take money out of your savings account at an ATM that's not owned by the bank that houses your savings account.

That's why comparing fees is just as important as taking the time to compare savings rates. If you choose a savings rate that slowly gets eaten away by fees, you won't have as much return on your savings as you would if you chose an account without fees.

So before you commit to a savings account, make sure:

  1. There is no monthly fee OR that you're easily able to maintain the minimum balance to avoid the fee.
  2. That they allow a certain number of free ATM transactions each month.
  3. That the bank has a competitive interest rate.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Financial Planning Tip Site? Request a Tip Now!


Guru Spotlight
Joe Wallace