5 Things To Find The Best Savings Accounts

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As a money management tool, a savings account becomes one of the important things since it becomes the most basic type of account in a bank or credit union that allows you to save money safely and withdraw funds as needed. A savings account usually pays interest on your deposits. But interest rates are relatively low with an average of less than 1% per year. However, there are some banks that offer savings accounts with higher interest rates. This allows you to grow your money faster without reducing the security of your money.

You may already have one, but you should review the basics periodically. Understanding savings accounts can help to use them more effectively to meet your savings goals.

This article reviews and explains about savings accounts, as well as what considerations when choosing a savings account. The reader will understand what a savings account is from the point of view of the experts, as well as how to get the best savings account.



If you want to use savings accounts more effectively to meet your savings goals then understanding savings accounts becomes very important. Here are some ways to understand savings accounts, as quoted from, https://www.ally.com

Savings account earns interest

The most obvious feature of a savings account is that the deposited funds increase as interest increases over time. However, the amount of interest earned depends on the account requirements in which you opened your account. Note that online banks tend to offer more competitive interest rates because their overhead costs are lower than those of brick-and-mortar banks.

Savings accounts are easy to open and access

You can open a savings account in just a few minutes online, over the phone, or through a teller. You can also make regular deposits and withdrawals (limited by federal) at any time without any concern about withdrawal sanctions. The presence of online banking – with your internet connection – makes it easy to access funds for 24 hours whenever and wherever you are. You can also link your savings account to another account, such as checking accounts and money market accounts, and transferring funds.

Saving account transactions are limited by federal lawWhile it is easy to transfer funds to and from a savings account, there are federal restrictions regarding the number and type of withdrawals allowed per report cycle. You can make as many deposits as you want, but federal law limits some types of withdrawals by phone and electronics (excluding ATM withdrawals) and transfers to six per cycle statements.

Savings accounts are a secure way to save

Saving money in a savings account is great if you do not want to take risks with, for example, your emergency fund. When you deposit money in an FDIC member-savings bank account, the Federal Deposit Insurance Corporation (FDIC) guarantees it to the maximum amount permitted by law.




Before opening a savings account, there are several things to consider in order avoiding the things that are not desirable. According to an article posted on https://www.ally.comthere are at least five things to consider before opening a savings account.

1.   Joint savings accounts can make money management easier

Each savings account owner can see the balance, donate money, or withdraw funds. All of that makes it easier for your financial management. That’s why today many married couples open joint accounts to save for home payments, vacations, important purchases, debt management, or other major purchases. Joint accounts can also help manage debt, billing payments, and other shared expenses. Other benefits of joint accounts can facilitate open communication and accountability when it comes to your savings and spending practices.

2.    Saving accounts together are not just for couples

Married couples are certainly not the only ones who enjoy the convenience of a joint savings account. There are situations where shared responsibility and access to funds are required. For example, an adult may find it easier to manage the finances of an aging parent if they share ownership in a joint account. With a joint account, all joint savings account holders have full access to the money in that account. In other words, all account owners can withdraw funds or close an account without consulting you. For that, open a joint account only with someone you trust and make clear guidelines for its use.

3.   Saving accounts together require ground rules

It’s a good idea to set some clear ground rules for joint accounts to prevent unpleasant things for one of the account owners. For examples:·      Agree on what money will be used – maybe a trip together, a birthday present, a down payment for a vacation property, or something else.·      Determine how much each person contributes and what if the money is used in a financial emergency. Unexpected expenses are sometimes inevitable. Therefore, it is important for each joint account owner to jointly make savings.·      Communicate with each other over the use of money from joint accounts. You certainly do not want to assume others know the specific withdrawal time. Whichever guide you choose, open and honest dialogue between fellow owner accounts can help you avoid or solve potential problems later on.

4. Joint savings accounts help you maximize FDIC coverage

One of the biggest advantages of opening a joint savings account is that you will be helped to maximize your FDIC insurance coverage in FDIC member banks. With a combination of accounts, you can insure more money than a single depositor in a bank. In other words, saving together can mean more saving.

5. Joint savings accounts can be opened online

You can open a joint savings account online with just a few clicks and some personal information from each account holder. With your online savings account and other owners can also apply for a loan as you wish. That means you can check balances, transfer money, and more – from wherever you have internet access. In addition, online banks often have lower overhead costs than traditional banks. Clearly, online banks can provide savings in the form of prices.



Justin Ritchard, as stated in https://www.thebalance.com, mentions in general there are two major benefits of a savings account that is safety and growth.

A Safe Place to Access Your Money

A savings account keeps your money in a safe place – your bank or credit union. Instead of carrying cash or saving money at home, for security reasons, you can put funds into a savings account.Cash that is not stored in a bank can be easily stolen or damaged if something happens at home, such as a fire. Moreover, the federal government provides guarantees for savings, thus making your money safer if the bank or credit union fails. Savings accounts offer easy access to your cash (also known as liquidity, or the ability to make withdrawals easily and quickly). After the money is spent, you can withdraw cash or transfer funds to a checking account to pay by check, debit card, or electronic funds transfer. You usually do not make these types of payments directly from a savings account – federal law limits a certain transfer amount of savings each month.Although there are restrictions on outgoing transfers, you can make unlimited cash withdrawals at ATMs or with bank tellers.

Steady Growth

A savings account pays interest in your account. As such, the bank will have a little extra to your account, usually every month. Interest rates depend on economic conditions and your bank’s desire to compete with other banks. Savings interest rates are generally not very high but your risk of loss is almost non-existent when your funds are insured on a federal basis. Little interest is better than nothing, which you will get from a checking account (although there are exceptions).

To compare savings accounts, you’ll want to look at the annual percentage rate (APY)  paid on the account, as well as details like minimum deposit amounts, fees, and other features.



Open a savings account so your money can earn interest easily. The process is very simple – and probably much easier than making money to be regularly channeled into savings. However, choosing the savings account that best suits your needs               can be a challenge. Here are some questions you should answer to find the right savings   account for you, as stated by Geoff Williams,  a contributor to U.S. News, at ttps://money.usnews.com.

Is this an insured FDIC-saving account?

Make sure your bank is insured by the Federal Deposit Insurance Corporation, said Yong Wang, a financial professor at Western New England University in Springfield, Massachusetts.

Does the account offer a good interest rate?

You can stop fantasizing about the wealth that you will collect with your savings account. In recent years, interest rates in savings accounts tend to resemble limbo dance (how low can you go?). However, while rates are unfortunately low – 1 percent annual percentage yield and frequently as low as .01 percent – you’d like your interest rate to be competitive with the other low rates and perhaps provide a bit higher yield.

What are the fees? 

It’s important to check your account fees before signing in with any bank. Fees may include a minimum monthly balance, annual fee, transfer fee, written report fee and other charges if you exceed the withdrawal limit. Although these fees are generally only a few dollars, but the amount can increase.

Do you want a savings account or something else?

Instead of a standard savings account, you may want to consider a money market deposit account or a certificate of deposit. They are both uninsured FDIC and quite similar, but there are some significant differences.

Have I asked all the questions I need?

If you feel dizzy because of spending money in a savings account, do not be afraid to ask anything to the bank manager or customer service department of the bank. From a more in-depth viewpoint, in addition to the above questions, as stated at https://www.reviews.com,   is submitted that to find the best savings account, they focus on online banking.

Their top choices all feature high, comfortable rates – you do not have to stay in a certain part of the country to have access to them – and have great customer support features when you have questions about your account or want to learn more about banking. Whether you are looking for an introductory savings account, or trying to maximize your interest rate, online banks offer large savings accounts that beat their mediocre competitors.

Again, as stated at https://www.reviews.com   that in their overall favoriteis Ally Bank.  With a 1.75% APR — twenty-four times the national average 0.06% APR — it has one of the highest interest rates on the market. In this case, high interest rate doesn’t mean sacrificing on customer features, a trade-off that some online banks make in the race to save money. But Ally impressed us with its fast and friendly customer service, and the ability to contact them however we chose — by phone, email, live chat, even Facebook — at any hour of the day.

Discover Bank is another strong contender for the best savings account. Its interest rate is currently 1.75% APY — just edging out Ally Bank. That said, Discover Bank’s fees for things like overdrafts and domestic wire transfers were a little steeper than Ally’s. These costs have the potential to cancel out any additional savings you might see from the slightly higher APY. Additionally, you’ll be sacrificing a couple of customer service options by going with Discover, since they only offer phone support (albeit 24/7), and they don’t have a live chat or email option.

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