How to Choose a Savings Account

If you are looking for a savings account there is now more to consider then which banks is nearest your house. The perks (and gimmicks) that are offered can be hard to pick through. The marketing campaigns can be very persuasive and most people just choose where they have their checking account or the bank most convenient for them. Since we are all different you probably should figure out what is best for you before you go looking at the advertisements so you don't get convinced of a feature you don't actually need. Here are a few points of consideration to narrow your choices.


Frequency of Use - Will you be needing to deposit to this account daily, weekly, monthly, or longer? What time frame will you need withdrawals? If this is an emergency account will you have access when you need it? While many of the online savings accounts offer higher yields, they don't have the accessibility of your neighborhood bank. Also, with yields so low you could just consider another checking account with a card you only get out for emergencies. Noodle exactly why you are using this account. This will make a good first cut.

Interest Rate- Now of all the accounts you have to choose that meet your access needs pick the one with the highest interest rate. The only reason I would not consider interest rates is if you don't intend on keeping this account for any amount of time.

Perks- Now it's time to fish for the goodies. They will be proudly displayed in all the advertisements and on the walls. They range from appliances, matched funds for the first few hundred dollars saved, higher interest rates on the first couple of thousand dollars saved, toys, neat saving tricks (like keep the change), and reduced rates on other bank products. You know what you like, have fun shopping.

Education-This is often a missed opportunity, but some banks have very intelligent people working for them. If opening an account buys you a little time to ask questions every now and again to these educated financial advisors, this could be worth the price of admission alone. Just listen to your friends when they tell of a bank that did something great for them. Odds are a smart business person is behind that scene.