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Best Saving Account - How to Find the Best Saving Account for Your Needs - Make Sure Your Money is Safe, The Interest Rate

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Looking for a good savings account recently? Choosing a good one can be a little overwhelming, but here is a quick and easy guide to what to look for when you’re checking out different banks and credit unions.

Make Sure Your Money is Safe

The number one concern you should have when giving your money to a bank is that you’re guaranteed to get it back again! This trumps all other concerns. (It doesn’t matter how high the interest rate they offer you is if you’re left without a penny when the bank goes under!)

Make sure you look for these magic words when you go looking for a saving account: FDIC insured. This means that even if the bank goes kablooie, the federal government will still back their deposits and make sure you get your money back. Any reputable bank should have this insurance, and if they dance around the question when you ask them about it, it’s time to run away!

This is especially important during times of economic recession, when even good banks are more likely to go under. Sometimes these things happen even to the best banks as a result of a very bad economic situation. So it’s always good to make sure your hard-earned dollars are safe and sound.

The Interest Rate

The next thing to look at is the interest rates being offered. Make a short list of possible banks in your area (that are all FDIC insured, of course!) and ask each one what their savings account interest rates are. Standard savings accounts usually will be somewhere around 1%, but if you’re saving a lot of money over a long time, even small fractions of a percent can make a difference.

Also use this opportunity to check out other aspects of the different banks you visit. Are the tellers helpful? Were they knowledgeable when you asked them about savings account interest rates? Would you feel comfortable doing business here? This is a great chance to “scope out” the place that could be a big part of your life from now on! If you’re looking online, ask yourself the same kind of questions about the site. Is it easy to use? Do they have a lot of online banking options?

Other Options to Consider

I know 1% interest doesn’t seem like a lot, but this is just for a plain Jane savings account. Many banks have other options for you to earn higher interest rates with a few stipulations. “Money Market” accounts are a popular way to do this – usually in exchange for a higher interest rate, you just have to agree not to withdraw more than a certain number of times per month. (Around five or six, depending on the plan.)

Many banks and credit unions also offer investment programs that their members can participate in. Details of these are always varied, so this is why it’s so important to have helpful tellers that will explain the pros and cons to you in detail so you know exactly what you’re getting into. But be advised, with advanced investment planning it is usually a good idea to consult your own professional help as well. You don’t want any unpleasant surprises when it comes to your nest egg!

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