4 reminders to consider for a savings account

Use the following recommendations to help you get the most from your new savings account.

11:53 22 April 2013

Newest records show that there are about 2.5 million people unemployed in the country at the moment which serves as reminder that our fates are never guaranteed. There are any numbers of odd and unfortunate occurrences which can cause family difficult times.

 

It’s imperative no matter what the income situation is, to set aside money each month for a savings account, whether it is a very small amount, or a substantial amount.

 

When setting aside some savings it’s also important to know your options for the most benefit. Here are a few things to consider when establishing a savings account.

 

• Interest rate—you’ll want the best interest rate you are able to find, so shop around and compare the different savings account terms.

 

• Thresholds—some types of savings accounts will only let you deposit a certain amount during the year due to imposed regulations. Don’t let this deter you though, even if you want to save more, a capped savings account will often offer significantly better interest rates.

 

• Money accessibility—when investigating a savings account, definitely check what is necessary in order for the funds to be obtained. If you do experience an emergency, the last thing you’ll want is to find out that you either aren’t able to access your funds at all, or that you have lots of red tape to go through. It’s your money, and it should be immediately accessible.

 

• Fees and penalties—depending upon the financial institution, there could be a few fees with a savings account. You may be charged if you do not maintain a certain amount balance, or if you do not deposit a particular minimum frequently enough. Certain banks may even close your account if there is no deposit for a period of time. Definitely familiarize yourself with these policies. If it doesn’t work for you, keep looking. Banks compete with one another and you may find a better deal.