Savings Account guidelines to be aware of

The recent economic recession especially in the U.S.A has led people to start thinking “if only I had saved some money”. In these days of crises any amount of money saved is a boon. Here is a good way to save and fill up the gaps during global economic crises – have a savings bank account.

The first step one has to take is cultivating the habit of saving money regularly. Even children have to be taught to be responsible and save money. This can be done by opening a savings bank account. Some people opt to put their money in stock market which is a risky business. So, we should be careful and invest money where we can make more money with no or less risk at stake when one really cannot predict the state of the global financial empire tomorrow.

There are different types of savings bank accounts available. So, we should first check the one which is financially beneficial to us. Many savings account providers offer different schemes like higher interest rates, less maintenance fees and other incentives to lure new customers.

Savings account interest is calculated as percentage. There are a few guidelines you should know:

• More money you put in savings account will not mean that your interest percentage will go up.
• Longer the money remains in your account, more the interest you get.
• Some banks compound interest daily, some quarterly or annually or biannually.
• Certain banks might offer a very high interest rate of 1.5% and some may offer way lesser than that figure itself.

The best way to select the one which suits you is to first compare different banks and the schemes that they offer. This can be done by surfing the internet or by visiting the bank personally and getting the information first hand or even by calling their toll free number and talking to the customer representative at hand.

While starting a savings account, you should also check out the fees the bank charges for using the ATM, and also when you request a statement of your account. Sometimes, when the minimum amount in your savings account falls below the limit the bank will charge extra for not maintaining the same. You can also activate over draft protection on your account. This means that if you have a checking account attached to the savings account and you write a check with insufficient funds in the checking account, money will be automatically transferred from the savings account in order to prevent the check from bouncing.

In holding a savings account there are certain rules where in you are allowed to withdraw certain amount of money from your account per month. If you exceed the monthly withdrawal limits, you will end up paying a fee to the bank.

Many financial experts suggest that one can save money when one considers savings deposit as a monthly bill that you have to pay. Then one tends to save and maintain a savings account promptly. This will in the long run help you in times of hardships.