March 9, 2007, Newsletter Issue #54: Comparing Savings Accounts from Different Banks

Tip of the Week

If you are starting to put something aside for that rainy day that may never come, you will want to choose savings account that provides shelter from that storm.

Choosing the right savings account for you is a matter of comparing different offers from different banks and figuring out what best suits your situation. When you are comparing savings accounts from different banks, be sure that you ask all the right questions. What are those questions, you ask? Here are a few. What Interest Rate can they Offer – Savings accounts earn money based on the interest rate that is associated with them. Usually, with credit cards and other encounters with interest rates, you are looking for the lowest rate. However, here you are the beneficiary of the interest so you will want the highest rate available.What Security Protections Do they Offer – Banks are simply the most secure place we have found to keep our money. That doesn't mean they are 100% safe. Be sure to ask about the security that they put into their client's money and how your will be protected.Is there a Minimum Balance – Many savings accounts require that you maintain a minimum balance in the account. In the event that you need to withdraw funds, you want to be sure you will not incur any fees. Ask your representative about minimums and fees associated with the account.

Ask these and any other questions that come to mind when choosing between savings accounts and you will feel much better about your final decision.

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