The savings account is a necessity because it is the place, where your emergency cash is stored. Many people even build a little nest egg using this account. It is a significant aspect of any investment portfolio, which is often overlooked. While choosing an account, ensure to do some research and consider the following factors.
Interest rates attached to saving accounts are extremely low, so this does not allow your cash to grow as expected. There is an ongoing debate that these accounts are not for hoarding cash and see it grow. It is a place, where the money is hoarded safely with an aim to aces it rapidly during an emergency.
Generally, low rates are around 4% but some private financial institutions are offering 6% and more to attract customers. if you choose the latter make sure to read the fine prints.
No monthly charges
Several banks charge monthly fees on saving account if the customer fails to maintain minimum mum balance as required. For example, the minimum balance required at the Del Norte Credit Union for share saving account is $5.
A few banks charge a penalty of $5 if the minimum amount is not maintained all the time. Choose a bank, which does not charge a monthly fee.
No opening deposits
A specific amount needs to be deposited to open a savings account in some financial institutions. It is a small amount, which is not too burdensome as you are opening an account to hoard funds. Fortunately, Del Norte Credit Union offers benefits like no deposit requirement.
The automation of monthly deposits will allow you to save regularly. Automatic transfers from check to savings account without any fee charged on this service needs to be considered. If you arrange for an automatic transfer of $60 every month in the savings then by the end of then you will have saved $720.
Mobile check deposits
The mobile deposit feature eliminates the hassle of visiting the nearest bank branch to deposit a check. Use the bank’s app and upload the front and backside images of the check. Request your bank to have it deposited and check your savings account. It adds to the convenience.
The bank needs to have a wide network of ATMs near your locality. It helps to get money anytime, during an emergency. According to federal regulations, saving account can be used to withdraw money only six times in a month or else the bank will charge you on every withdrawal.