Saving And Checking-Can Save You Hundeds

Believe it or not, by spending a little time and looking around at your options for saving and checking accounts you can save yourself several hundred dollars a year in some cases.

Saving

If you find accounts that are interest bearing you may also be able to actually earn a few hundred dollars a year. When you add up your potential earnings with your potential savings you will see that you can really add to your bottom line with a little bit of time and research on your part.

That is the focus of this article, showing you some simple tips you can use to find better options in saving and checking accounts so you keep more of your money rather than give it to some big bank.

Here are a few things to keep in mind:

1. You don’t have to just settle with banking at your local bank, or the local branch of a big national bank. Today you have more options than ever and most of those options can save you hundreds of dollars a year.

You can find an online bank, compare the fees and interest paid for local banks, and even look at the advantages of banking at a credit union.

2. When comparing various banking options between online and off, banks versus credit unions, etc. make sure you compare features and fees from one to another. Though a bank and a credit union do things differently you can still compare features to find the one that offers you the best combination of high interest rates and low fees.

Just because one bank offers you a slightly higher interest rate, it may not be worth it if you have to keep a minimum balance. It’s up to you, but I always thought a minimum balance was kind of unnecessary if I wasn’t earning interest on a certain account.

If you are earning interest then keeping more of your money in the account is a money saver (or more accurately, a money earner) for you. But, if you aren’t earning interest yet you have to keep a minimum of say $100 in that account, that is just $100 that you can’t access.

Not too sure how that benefits you. It seems to me that if you have to keep money in an account you aren’t earning money on and that you can’t access it’s just a waste of money.

3. Find out what the various banking institutions charge for fees – especially overdraft fees. For many banks, overdraft fees are a multi-billion dollar a year stream of income. It’s big bucks for the banks so make sure you know what the policies are at any bank before you move your money there.

Most banks will offer some type of overdraft protection but in many cases this only protects the company you actually wrote the check to: the bank will pay them if you don’t have enough funds but they will often still charge you an overdraft fee.

If you can find an institution that offers you the option to tie a savings account to your checking account and funds can be automatically transferred from one to another to prevent an overdraft, this may be a better option.

4. And lastly, make sure that whatever type of bank you choose you have federal deposit insurance. Whether FDIC for a bank or NCUSIF for credit unions check to see that the financial institution you are considering has got you covered.

It’s a lot easier to save, or even make, money with saving and checking accounts if you are willing to take the time necessary to find the best option for you, you can hang on to a lot more of your own money!

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Categories: Investing