Best Checking Accounts | Best Saving Accounts

Best Saving Accounts

Owning the best savings accounts has become a necessity in the modern times. The expenses seem to rise every now and then. Going for savings is what every person dreams to. There are various ways by which we can save our hard earned money. The most general way is to keep away the money, so that it is not added in the regular expenditures. There are various bank accounts that offer different types of savings accounts. They offer high interest rates too. If there would have been a single bank with all the option clubbed together, then it would have been very easy on the part of customer. With growing competition, we have different banks with different exciting offers. It thus becomes difficult to find the best one for one’s own self. However you cannot avoid the banking procedure, and so you need to keep in mind some basic facts prior to opening a savings bank account.

First and foremost, you should judge the credibility of the bank. You will be putting your money in their accounts, and you have every right to verify the minutest details regarding them. You must assure that the respective bank, with which you are planning to do business, is FDIC insured. This will protect and safeguard your funds and you can relax. Having the FDIC insurance, you can rely on the government, who will be returning you all hard saved pennies, in case any mishap happens. After this, you need to find where the headquarters is located or the main branch of the bank is located. This may be important, as important decisions are taken by personnel over there. You also need to check the availability of the branch near your home or your office. This is because that many banks still don’t provide the facility of internet banking with the savings bank account. So you may require visiting the banks often.

The different features associated with the best checking accounts are not available with the savings bank account. Don’t hope to get the ATM or the credit card facility with your new savings bank account. A savings account will help you to keep your spare money, which you will not require in the near future, at safe hands. Once you open a savings bank account and deposit cash, you can be relieved against the calamities that might have robbed your cash. The minimum amount that you require to open the savings bank account is generally $100. You cannot keep any amount of cash in one account as there is an upper limit on the amount that can be deposited. Generally the banks fix this amount as 1 million. Still it is advisable that if you are keeping a major chunk of money, then don’t trust a single account. Try to separate your cash, rather than accumulating the whole lot in a single account.

There are two types of interest offered on the regular savings bank accounts. One is calculated on the fixed amount and is fixed for the whole year. Second is variable, as it is calculated on a compounding basis for twelve months. It is more popularly known as the Average Equivalent Rate or the AER. The second one offers lower rates than the first one. The interest rate offered by majority of banks under the fixed scheme is generally 3% to 3.5%, whereas the second one is kept higher for the first year only and is lowered for the latter years. Apart from these you can get better returns on your investment, if you are a smart investor and do not require money for the time being. The bank offers better options like mutual bonds or certificate of deposit. In these products the interest rate offered by the banks is pretty high. The drawback is that you cannot take your cash before the time for these bonds or CDs matures.

In case you own a savings bank account, you can withdraw your money. There are certain limits on the number of the withdrawals imposed by the bank, which you cannot exceed. With modernization, the traditional methods of banking are also changing. Many banks offer the facility of online banking or banking via phone. You need to access your needs and find the best savings accounts for yourself.

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