Saturday, April 7, 2012

The 3 Things Your Next Savings Account Should Have

Many people have been steered away from any relationship at all with financial institutions in the wake of the Great Process. However, there are many banks that still have products that are advantageous for the average person. The secret to finding these products is to keep a close eye on the fine print of the agreements. For instance, with a savings account, you should look for the following three attributes. You should not put your money into any savings account but does not have the attributes below.  

High Interest Rates There are many different types of savings accounts, but the one most people are interested in, quite rightly, are those with the highest interest rates. Because banks are trying to win back customers that have been spooked away, they are offering higher interest rates than normal on their savings accounts. The first question that you should be asking yourself is, "What is a high interest rate on savings account?" 

You can find out exactly what constitutes a "high interest rate" by going to the price comparison websites that specialise in such comparisons. On these websites, you can find information about going market rates available to you. You should also know that hire interest rates are available to people who deposit higher initial lump sums of money.  

No Lock In Period Having no lock in period on a savings account is also a feature that you should not go without. There is no reason that a bank should have to lock in your money in order for you to invest with them in this day and age. 

A lock-in period means that there is a portion of time in which you cannot take your money out. In the wake of the recession, many people may have a more immediate need for the funds that it placed into a savings account. If there is a lock-in period or some kind of penalty that an investor incurs for taking money out before a specified period of time, there is really no reason to put money into a savings account in the first place. 

Lock-in periods are usually reserved for accounts that are much more longer-term than a savings account. These accounts include certificates of deposit and money market accounts. However, there are many things that the bank gives you in return for a specified lock in period within these accounts. You should not accept any sort of lock in on a savings account.  

No Monthly Fees No savings account should have any sort of monthly fees associated with it. Many banks are trying to make up for the money lost in the mortgage crisis by implementing fees on those below a certain level of savings. However, there are just as many banks that are offering savings accounts with no fees at all no matter how much money you deposit. 

Make sure that you are not being charged any hidden monthly fees with in the fine print of your savings account agreement. This may take a little more time initially, but it will save you a great deal of money in the long run.

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