The best savings account you can get is the one that offers the highest interest rates. Normally, online banks offer higher interest rates than regular local banks do, because they have less overhead and they are able to have a worldwide customer base. Therefore, they can afford to offer higher interest rates on their savings accounts, and the higher the interest rate the faster your money will grow.
It is very important to have a savings account and put money into it every payday, because you will not be as devastated financially if you lose your job or an unexpected emergency comes up. You will not get rich off of a savings account, but it is a start to gaining a nice nest egg. The economic problems that our country is having today should teach us to save more money, use less credit, and to live within our means, because our financial future as a nation is so uncertain. There are many people, who are struggling financially right now, because they have to little savings and too much debt.
Furthermore, by opening and maintaining a savings account you are being a good example to your kids. Teaching your kids how to be responsible and save money is one of the best things you can do for them. You should start teaching them to save back a portion of their allowance from an early age. Too many people today do not know how to properly manage their money, so if you want your kids to have a good life you need to start teaching them how to save money now.
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In addition, always read the fine print and make sure you understand all the details before you open a savings account. Pay attention to how much the minimum required deposit is, because the interest rate is usually dependent on the amount of the initial deposit. Therefore, the less money you have to deposit upfront the lower the interest rate will be, so the best savings account will usually require a higher first deposit and will in turn offer a higher interest rate.
Also, find out how many monthly withdrawals you can make. Some banks offer a number of free withdrawals each month and then afterwards charge a fee. Furthermore, some banks will also require a minimum balance, and you need to know what will happen if you ever go below it.
Additionally, you need to know if the bank is FDIC insured, and how easy is their website to use? Of course, with an online bank, their website is going to be the main way you access and use your savings account along with how you will communicate with your banks customer service department. Therefore, their website needs to be easy for you to use, and their customer service needs to have an easy way for you to contact a human concerning any questions or problems you may encounter.
In closing, the best saving account is the one with the highest interest rates, and there are many banks that offer them. You will probably find most of these banks online. Just take a little time and make sure you understand what each bank has to offer before you open your account, and try to put a little bit of money into your new savings account every payday. You will be amazed at how quickly your money will grow.
