Bank Account Comparison

When you decide to do business with a financial institution, there can be a lot of options to consider. Choosing between a savings account and a checking account is one of the first things you’ll need to do. Even after you’ve made that choice, you’re far from finished. There are still different types of each. Read on to get a better idea of what to expect when comparing bank accounts.

How To Find The Best Checking Account

Be sure to read all the fine print when you open a checking account. It’s tedious, but it will prevent unpleasant surprises. The bank or credit union’s website may have most of this information. One of the first things to consider is checking fees.

Fees

Some financial institutions will advertise something as free checking, but you should look closer. In order to avoid service fees, you may have to keep a minimum balance in the account at all times. The minimum balance will vary from bank to bank. It may only be a hundred dollars, or it could be significantly more. If the balance of your account drops below that number, even for one day, you’ll be charged a monthly service fee.

There is also a fee for printing checks, most of the time. Yet, there may be special offers that allow for free checks, when you sign up. It’s usually less expensive to order subsequent checks from an independent company rather than through the bank.

You may be faced with a monthly service charge or maintenance fee. Sometimes, when they advertise a free checking account, the maintenance fee can be waived under certain circumstances. Often you have to have money deposited directly into the account on a regular basis. Any regular payment will do, such as your paycheck, or a social security check. If you already make a direct deposit every month, this should not be a problem.

Perks

Many banks offer free benefits to encourage people to open an account with them. Some may offer free notary services or cashier’s checks. Also, you could find an institution that offers free traveler’s checks, if you comparison shop.

How To Find the Best Savings Account

Because your funds are available to you at any time,  most traditional savings accounts offer pretty low interest rates. However, they can be good for insurance against overdraft. Overdraft fees can be very expensive, and you can have an overage taken from your savings account automatically, in some cases.

If you want a good rate of interest, you may need to invest in a certificate of deposit. A CD, as this is commonly called, offers a better interest rate in return for your commitment to leaving the funds alone for a specific time period. You might choose a one year CD, meaning that you agree not to withdraw funds for at least a year. You can withdraw your money before the term is up, but you’ll incur significant fees. CDs are a good way to earn a little more interest, as long as you’re sure that you won’t need the money during the term.

Online

Make sure that you can access your checking or savings information from the Internet. This is a very convenient feature, and can save a lot of time. Also, look into the possibilities of online bill paying, as this can save time and postage. This is so popular that some banks are strictly internet bank accounts.

Summary

When you’re choosing a bank, credit union or other financial institution, check out the costs in terms of fees. This can include maintenance fees, check charges, and overdraft fees. If you’re thinking of a savings account, interest rates are important. If you can afford to leave your money alone for a while, consider a CD. Also, online access is important to many people, so check out online options before you sign up.