How to Choose the Best Checking and Savings Accounts
Saturday, January 18, 2020, 6:00 AM | Leave Comment
While storing cash away in a drawer might have been the best approach centuries ago, opening up a proper checking and savings account is a step that you should take.
Whether you are getting your own accounts for the first time or looking to change banks, reviewing some specific criteria can help you to make the best decision.
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Minimum Balances
For both your new checking and savings account, you should find out what the minimum balance is. In other words, the bank may require you to keep a certain amount of money in the account in order to have the account stay open. In the event that a minimum applies, find out what the stipulations are. For example, you would want to know if a grace period applies or if your account would automatically close if the balance falls below the minimum.
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Transfer Rules
In the event that you are opening up both a checking and savings account, you are likely going to want to transfer funds between them at some point. For example, some people have their money deposited into their checking accounts and then transfer funds over to their savings accounts. What you must do is find out if restrictions apply to transfers. You may discover that you can make a limited amount of outbound transfers from your savings account each month. While this rule might seem annoying, keep in mind that it helps you to actually save money.
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Interest
Part of having a savings account is increasing your funds. One of the ways to do so is to put a set amount of money into your savings account each month. However, you also need to look for an account that has a good interest rate. Essentially, you earn interest on the amount of money that you put into the bank. Even when you are not yet saving tons of money, getting as much interest as possible is important.
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Accessibility
You should also consider the ways in which you want to access your checking and savings account. Some people prefer to go to the bank and speak with a teller to make their deposits and to withdraw funds. Others prefer to sign up with banks that allow for mobile deposits. Typically, most individuals want to work with a bank that permits online access to the accounts. Figure out what works for you so that you can make the best decision.
Checking and savings accounts offer you options when it comes to your money. Conducting some research and following some guidance can help lead you to the top choice.
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Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan
