How to Select the best Savings Account for your Hard Earned Dollars

by Fox Symes on June 17, 2013

When you’re looking to open a savings account, you can often be left feeling spoilt for choice. There are simply so many options out there to suit a variety of different needs and saving styles that it can make things a little confusing. To make things a bit easier, here are 5 important things to look for in a savings account.

Great Interest Rate

This is one of the biggest considerations when looking for a great savings account. Ideally you want to find an account with the highest interest rate possible so that your savings continue to grow. While this is very important, there are a few other things that you need to keep in mind when choosing the right savings account.

Low Fees

The catch in many high interest accounts is that they look great on paper until you start totalling up all of the extra fees. Before signing up for a new savings account, make sure you know how much you will be paying in extras, such as monthly service fees, transfer fees and any administration costs. You may find that a slightly lower interest account that has little to no fees could actually be a more beneficial option.

Ease of Access

Thanks to smartphones and the internet, we now have almost instant accessibility to most of our accounts. Be aware, however, that some savings accounts aren’t quite as ‘on demand’ as your normal account. Weigh up your options and decide whether you’re looking for something with a high yield but that may charge larger withdrawal fees and necessitate notice in advance, or if you would prefer more instantaneous access to your money with a potentially lower interest rate.

Suitable Features

Think about what you want from your savings account. The features you are looking for may be vastly different than your normal account. For example, usually access via a debit card is an important consideration when opening an account, however you may prefer not to have this kind of temptation with your savings. Just remember that if you don’t have a card linked to your account, you will have to make all of your withdrawals in person at a branch. For most people, this is an advantage as it removes the temptation of impulse spending eating into your savings.

Rewards

Some financial institutions offer incentives for successful savings. For example, if you make regular contribution of over a specified amount without making any withdrawals, you may be treated to a much higher interest rate on your account. These rewards will depend on the bank and the specific account you’re interested in, so make sure you do some research to find the best deal for your needs.

Keep these top tips in mind to help you get the right savings account for your financial situation. Take some time to do your research, and ask plenty of questions from each bank you visit. By taking your time and being informed, you can maximise your money and ensure that your savings are working for you.

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