• Best Practices New Normal
  • Digital Dentistry
  • Data Security
  • Implants
  • Catapult Education
  • COVID-19
  • Digital Imaging
  • Laser Dentistry
  • Restorative Dentistry
  • Cosmetic Dentistry
  • Periodontics
  • Oral Care
  • Evaluating Dental Materials
  • Cement and Adhesives
  • Equipment & Supplies
  • Ergonomics
  • Products
  • Dentures
  • Infection Control
  • Orthodontics
  • Technology
  • Techniques
  • Materials
  • Emerging Research
  • Pediatric Dentistry
  • Endodontics
  • Oral-Systemic Health

5 Things to Consider When Opening a New Savings Account

Article

A savings account is a fundamental part of your financial health, so it’s important to take into consideration these five factors.

savings account interest bank

As you grow your finances, you'll need someplace to keep them and a savings account is the safest place to do that.

Not just a place to hold onto your money for future payments, the right savings account can also grow your money over time.

When you open up a new savings account it’s important to pay attention to these five factors to make sure you get the most out of your bank.

Interest Rates/APY

As mentioned before, your savings account is a place to grow your money over time. While a savings account won’t have the same potential return as investing in the right stock, every bank has an interest rate that they apply to the money you deposit. This is the amount which the bank will pay you for keeping your money with them.

Not every bank will have the same interest rates, so you have to consider which one has the highest interest rate and then if that will give you the highest annual percentage yield (APY). The APY is a separate percentage based off not just the interest rate, but the frequency at which the interest is earned. This makes the APY a more accurate measure of the profit you will earn on a deposit over the span of a year.

Some banks will also change the interest rate depending on how much money you plan on keeping in your account, so know ahead of time how much money you plan on depositing.

Online Only Versus Traditional

Seemingly everything is moving to have a permanent online presence and banks have been on the forefront of this change. Most banks have their own apps to conveniently access your money from wherever you are. You can deposit checks by phone, you can move money between accounts, and even open new accounts in them.

However, online banking might not be for you if you need access to your cash in a moment’s notice, or just want to deposit into your savings at an actual brick-and-motor location. You will have to make sure that the bank you are using has physical locations near you.

Fees

When you’re looking into a new savings account make sure your potential bank doesn’t have monthly fees that you’re uncomfortable with. Wallethub, an independent personal finance website, has a useful database of savings accounts with interest rates and monthly fees for you to compare. Often times banks will offer similar interest rates, so whether they have monthly fees or not can be a helpful tie breaker.

Each bank will also have different ATM policies when it comes to fees for withdrawals. Take into consideration if the bank you choose has their own ATMs near you, otherwise you will have to pay a fee for using a different ATM each time.

FDIC Insurance

The Federal Deposit Insurance Corporation (FDIC) insures your money, up to $100,000, when you put it into a bank account. Investment companies aren’t covered by the FDIC, whereas the majority of banks are.

Make sure that the institution you choose is insured under the FDIC. Most of them will be, but you don’t want to realize your money was never insured after the fact.

Do you need another savings account?

If you have never opened up a savings account, then do it. A savings account makes sure that your money will be there for you as you accumulate wealth and start making purchases like a new car, or even a house.

If you already have a savings account, then it might potentially be more useful putting your extra money elsewhere. You can force yourself to save for your retirement by contributing to a 401K, or invest in fixed annuities or certificates of deposit that will guarantee you money over a longer period of time. Perhaps even another checking account might be a better deal. Don’t force yourself into another savings account unless your situation calls for it and you’ve considered all the facts.

Related Articles

  • Saving Doesn’t Have to be a Burden
  • Beat Inflation, Reduce Risk by Splitting Savings Among Safety, Safety-Plus-Growth, Growth Buckets
Related Videos
Mastermind – Episode 35 – Finding Strength in Our Differences
The Uptime Health Story: An Interview with Uptime Health CEO and Co-Founder Jinesh Patel
Mastermind – Episode 34: Proactive Dentistry, Diagnostics, and Early Detection
2024 Dental Products Report Spring Selection Bracket Reveal Video
Process of Care Workflow and Repairing Early Caries with Guided Enamel Remineralization
Addressing Unmet Needs in Early Childhood Oral Care - an interview with Ashlet Lerman, DDS
Mastermind Episode 33 – Charting the Course for the Future of Dentistry
CDS 2024 Midwinter Meeting – Interview with Debbie Zafiropoulos, who discusses a trio of new infection control products from Armis Biopharma.
2024 Chicago Dental Society Midwinter Meeting – Interview with Peter Maroon, business development and sales lead at Spectrum Solutions® on the new salivary diagnostic test, SimplyPERIO.
© 2024 MJH Life Sciences

All rights reserved.