Best Savings Account: How to Find the One for You

Best Savings Account: How to Find the One for You

We have another helpful post from Savvy Sugar on how to find the best savings account for you.

An important to-do on your financial list is to have a savings account. In a Savvy Sugar survey, the majority of readers said their biggest money worry of 2011 was not having any savings. One of the first things you need to do is to establish a savings account where you can start putting your money in. If you don't have one, it's time to get one. And if you already have one, you might want to reassess the one you currently have.

Here are a few tips to help you make the right decision:

Do Some Research

First, do some research to see which one will be the right savings vehicle for you. There are plenty of low-risk accounts to put your money in. Some institutions include online banks, community banks and credit unions. You can also go to to find an account with the best interest rate.

Consider a Checking Account

Interest rates on savings accounts are pretty low right now and the rates seem to keep dipping. Some checking accounts offer better deals, although there are more stipulations such as the number of times you have to use your debit card. Bankrate did a study of the best high yield checking accounts a few months ago and there was one credit union that even offered a 6.7% interest rate. However, keep in mind that checking accounts are more liquid and it may be easier to spend the money in those types of accounts.

Before You Pick

Make sure you read the fine print and know the restrictions of your account. For example, in the case of savings accounts, there is usually a limit on how much money you can leave in the account and limits on how often you can withdraw or transfer money. Ask yourself these are restrictions you can deal with. And finally, check for any high fees.

Leaving Your Bank

If you decide to leave your bank instead of moving your money around (but many consumers stay put even when they're unhappy), there are several steps to take. You need to do some prep before you close your account such as opening a new account, making a list of your direct deposits and automatic withdrawals, printing out important records, checking to see if your bank will match your outstanding loans or give you a better deal, canceling your account and asking the bank for what's left in your bank in the form of a check or cash. Get some form of confirmation (preferably a letter) that you have closed your account.

Wait It Out

The process will take a while and it may even take up to about a few months for everything to clear, so be patient!

To read this post in its original form, head over to Savvy Sugar

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