Important features of a savings account
When you are out looking for a savings account, there are a number of factors to keep in mind; it’s no longer just about the interest rate on offer. The interest rate is obviously an important criteria but it no longer is the end all of everything with regard to a savings account. A savings account is preferred for a number of reasons. The most obvious one among them is that you can withdraw your money whenever you want. You do not need to worry about lost interest or fines in order to access your cash at your bidding. It’s as simple as going to an ATM and withdrawing the cash. But the flipside is that you will not get as much interest as other banking instruments.
Try looking for internet savings accounts. This sort of an account will make it easier for you to deposit your money without leaving the comfort of your home or office. Besides it will save you a lot of time. The other features that you need to look out for while getting a savings bank account are,
Interest rate
This is the one most important thing you need to look into. The higher the interest rate, the greater your savings will be. You need to check the annual percentage yield of various banks in order to come to a conclusion as to which one to go with. Online banks will definitely have a higher APY rate because they save on the physical branch space costs.
Facilities and services
There are a lot of added facilities that a couple of banks are known to offer. Online banking is now the norm in most banks. You need to have this facility in order to ease your online transactions. Telephone banking is another option which you could think of. This is also a good option because you get the opportunity to talk to a representative while doing the transaction.
ATM cards or Debit cards
All banks provide free plastic cards these days. An ATM card or a bank card will just suffice for your bank withdrawals. But you cannot use it swipe at the local grocery store. In order to do this, you will need a debit or credit card. try to see if you can get a credit account attached to the same savings account.
Overdraft protection
This is a new method of preventing you from writing checks which get returned. If you do not have sufficient funds in your checking account, the money will be automatically transferred from the savings account and you will be charged a minor fee. Hence you avoid paying the over draft fee or the negative balance fee. Besides it gives you peace of mind after writing a check. You need not have to worry whether the money is really there or not.
These were just a few of the features of a savings account. With the advent of technology, there will be new features every day. Try to get the most out of your savings account by asking around and getting information from as many banks as possible before you take a decision.
