Everyone needs a bank account. Gone are the days when people could keep all of their money in cash hidden away in a mattress. Modern technology and online banking make having a good bank account a crucial part of business and life.
Whatever bank you choose needs to provide you with the modern conveniences that we have come to know and love. Online and mobile banking is absolutely crucial. If we let people from 50 years ago know that they could one day cash a check through a phone, it would blow their minds! Banks offer us convenience and security. That security is something we shouldn’t take for granted. It means that people’s money is truly safe.
Savings Accounts
A savings account can help you to safely and easily set aside money for future purchases and goals. A savings account is a safe way to grow your money. The interest rate is stable making a savings account a good option for those who do not want to risk their money being tied up in investments, stocks or real estate. A savings account can allow you to put money aside and have it steadily grow for your future financial goals.
Shop Around
There are a few things to consider if you are planning to open a savings account. The first thing is to research what banks are offering. You do not have to sign up for a savings account with the first bank you come across; rather you should investigate what the bank is offering in terms of savings accounts. Savings accounts used to offer very similar interest rates, fees and service but now banks are very competitive. Banks now try to differentiate themselves from one another based on their offerings which may include great promotions but make sure to read the fine print. There may be rules that you have to follow including securing a minimum opening deposit and transaction limits. You will have to carefully check the fine print to ensure that you know all of the fees and rules that are required for having your savings account.
Looking around for the best savings account to meet your needs doesn’t have to be painful. You can easily find out what banks are offering for their savings account by searching online. You can easily find out what they require to open a savings account and what they offer you as a customer. Once you have narrowed it down to a few banks put together a simple spreadsheet to track which savings account would make the most sense to meet your personal banking and savings needs.
Online Banks
You may have seen commercials and other advertisements for online banks. These banks forgo the expensive brick and mortar building and service staff by offering their banking services all virtually. These online banks are accredited the same as other banks but are able to offer higher interest rates because they do not have the same costs as other banks do. Service fees are generally quite lower with online savings accounts as well, making them a worthwhile option.
Saving Tips
Some people are born savings, and others struggle with setting aside money. It doesn’t matter what category that you fall into, small steps can go a long way.
- Schedule automatic deposits to your savings account
- By automatically depositing a set amount to your savings account every pay check you will find that you don’t even miss it.
- Set financial goals
- By setting savings goals you will help yourself to stay on track and motivated to save.
- Keep track of your daily spending
- Knowing where your money is going is the best way to become aware of your spending habits. Look at your habits and think of small changes you can make to increase your ability to save. This can include bringing a bagged lunch to work, carpooling or eating at home rather than restaurants.
Opening a savings account and using it wisely can help you to grow your personal savings in a responsible manner. Make sure to check up on your account every so often to ensure that you are saving the best way you can by avoiding unnecessary service and transaction fees.
Checking Accounts
A checking account is an important bank account that can keep your money safe and accessible. You can make easy deposits and withdrawals from your checking account to pay off debts, credit card balances, and to write checks. A checking account can prevent you from being penalized with high service fees that can arise from not having the minimum balance or having too many transactions within a given period of time. The interest rate of a checking account is generally lower than that of a savings account, but you can access you money more freely which is often not the case with a savings account.
Checking accounts have evolved and become more sophisticated over the years. They are a great way to manage your money if you know what you are doing. You should make sure to learn all about the way your checking account works.
Things to Look for in a Checking Account
When you are looking to sign up for a checking account it is important to know what the bank is offering. Not all checking accounts are the same so make sure to read the fine print and have an understanding of how to best utilize your checking account. Some of the things that you should look for when signing up for a checking account include:
- Convenience
- Look for online and mobile banking options so that you can access your money from anywhere at anytime
- Ability to transfer money between bank accounts
- Access to ATMs
- Direct deposit of your paycheck gives you easier access to your money
- Time Savings
- Automatic bill payment options
- Scan and deposit checks directly from your mobile phone
- Direct deposit set up for paychecks
- Easily view and monitor account balance
- Easily transfer money from one account to the other
- Send money electronically to pay bills or send money transfers
- Security
- Peace of mind that your money is safe
- No longer have to risk carrying cash around
- A call to customer service can prevent theft from occurring from your checking account in case your wallet is lost or stolen
- Get notifications from your bank when your checking account balance has fallen under a certain amount
- Updates when a withdrawal or debit transaction has been subtracted from your account
- Money Savings *Keep in mind that you may have to keep a minimum balance at all times to reap these benefits.
- Paying bills online can allow you to pay them off right away without having to worry about late fees
- Waiver of monthly checking account fees
- Free bill pay
- Earn interest
- Free personal checks, travelers checks and money orders
- Preferred rates on loans
- Unlimited transactions
- Flexibility
- Mobile banking including deposits, account transfers and bill payments
- Easy access to ATMs
- Direct deposit
Researching checking accounts and what they offer can ensure that you are choosing the right one for your personal needs and financial goals. It can help you to establish your credit which can benefit you when it comes time to purchase a home or car. A checking account is very useful when used properly so take the time to know all about your checking account.