A good savings account offers more than just a good rate
Posted in: Banking
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Look for no minimums, FDIC insurance, and online account access.
While shopping around for a savings account, it is likely you will also search for CD rates and compare the varying rates of money market accounts and savings accounts. But if you want a place to save your hard-earned money, simply finding the best CD rates, saving rates, and money market rates is not enough.
1. Is there a minimum balance to maintain?
Some banks want you to maintain a certain dollar amount in your account each month. This monthly minimum is not always easy to maintain, and the account could carry a stiff penalty for the months you don’t keep that amount.
Find out whether your potential bank has a minimum balance requirement and whether or not it would be an easy one for you to maintain.
2. Is the bank FDIC insured?
Most banks have coverage under the Federal Depository Insurance Corporation (FDIC). This insurance protects your account from bank-related losses like bankruptcy of your financial institution.
It is important to remember that if you have an account with your bank which has variable investments, FDIC does not protect against normal investment loss.
3. Does the bank offer online statements and account access?
Convenience is extremely important when choosing a bank to do business with. In order to keep your information safe and your account easily accessible, your bank should offer online statements and account access.
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