Question

Why is it important to compare savings accounts to get the best interest rate?

Answer 1

1.Minimum Balance. A low or no minimum balance requirement helps you save money from day one. Some accounts can be opened with as little as $1 and require no minimum balance. 

2. Monthly Fee. Many banks charge a monthly maintenance or service fee for their accounts, especially if your balance dips below a required minimum. Look for an account with no monthly fees. 

3. Online Transfers between Accounts. A major advantage to using a savings account is the ability to access your money whenever you want. That includes transactions from the comfort of your home. You should be able to easily transfer funds between your checking and savings accounts online. 

4. Automatic Savings Transfers. The best savings tool makes saving money as painless as possible. Some accounts will let you set up an automatic transfer of funds from your checking account at regular intervals. This feature helps you save money before you are tempted to spend it. 

5. Security. Shop only for those savings accounts that are insured by the Federal Deposit Insurance Corporation (FDIC). This protects your account balance up to $250,000 in the event of a financial catastrophe.