As silly as it may sound, saving is essential. You want to travel or need a new sofa in the short term. Or just for a long time. Maybe you want to buy a house, pay for your children’s future studies, or save for your retirement. But how do you choose a good savings account? We are happy to give you some tips.
Choosing the correct savings account
A savings account is a savings account, you would say. How much difference can there be between the different banks? Well, quite a lot. And whatever your savings goal, you naturally want the highest possible return on your savings. In addition, the costs differ per account, and you sometimes get handy extras that can help you save even faster. Therefore, pay attention to the following:
High savings rate
The interest rates on savings are currently meager, so it will not help you much. But that does not cover a higher savings interest rate yields more than a low one. If you opt for an account with an interest rate of 0.05%, you will pay less than an account that yields you 0.35%. If you have a lot of savings, that can make a big difference.
It is also essential to check how often the interest rate is adjusted and the bank’s interest rate trend. Suppose the interest rates go up again. Does the interest rate then follow, or do they remain at the bottom of the market? And when you receive the interest. That is quickly earned! You can choose to have the interest paid out daily at some banks, so you get interested in interest.
Cost of your savings account
A savings account is often free, but most banks require that you also open a checking account with them. You can already feel it coming; it is not free. Therefore, be aware of the costs. In our bank comparator, you can easily see which bank is the most advantageous for you based on your income.
In addition to the checking or savings account costs, it is also essential to check whether you can always withdraw and deposit money unlimited and free of charge. This way, you will not be faced with unexpected costs.
Now you know what you’re paying for that savings account. But – not unimportant – what exactly do you get for that price? For example, it may be that one bank is a lot more expensive but offers you a complete payment package with a high-interest rate, while with the cheapest variant, you get a low-interest rate and miss all kinds of other options.
Then we are talking, for example, about the option to open different savings accounts for your other savings goals – which is handy for the overview – or to opt for different types of savings on one account. And maybe you can open joint savings account for free with one of the banks you have in mind. So handy.
Arrange online or to the office
A final point that is useful to consider is how you want to arrange your money affairs. Do you prefer to do this online, or do you like to visit a nearby office? It is handy because you can quickly arrange your banking affairs at any time.
You often do not receive paper statements at an online bank, but you can view and download your statements online. On the other hand, there is no office where you can pop in. If you have a high preference for one or the other, check carefully about your bank in mind.
Saving with the help of intelligent technology
Do you want to make the most of your savings? Then saving is a good option for you. With the help of smart technology, banks can give you handy alerts when it is better to transfer the balance on your checking account to your savings account, for example.
Do you receive interest on your checking and savings account?
You can open many accounts free of charge.You can arrange everything quickly and easily online. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.