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Bank account features are the fundamental determining factors depositors should consider in choosing a bank. Though most banks offer almost the same account components, there are features that they differ slightly from bank to bank. To make sure that you pick the right company, it is very important that you compare each of the bank's features, how they vary, then you can decide which one is more beneficial to you.
1. A Good Interest Rate
The interest rate is one of the first deciding elements you should look out when you open a bank account. The higher the interest rate, the more advantageous it is for your money to grow. Because there's a stiff competition between banks in pursuing clients, the rate each one offers does not differ that much. Some banks only compete in a matter of one to five percent. A one percent higher could make a big difference in the growth of your savings.
2. Annual Percentage Yield (APY)
The rate of earnings per year accumulated through your interest-bearing bank account is something to chase after. If you have a larger amount of funds to deposit, it will surely generate good returns. Time deposits, or Certificates of Deposit(CD), is the ideal package to open if you want an ample yield. The longer your account matures, the higher the APY. Some banks offer promotional rates on special types of account.
3. Banking Related Fees
Banks impose fees on different transactions and circumstances. Monthly fees are charged for certain types of bank accounts where a specific amount of balance is required. Deposits and withdrawals made through ATMs could also have fees. Other banking transactions such as check orders, balance inquiry, bouncing checks, and closing an account, may have possible charges.
4. Overdraft Protection Plans
Overdraft protection is a feature many banks offer to their customers. This service helps you in circumstances where you overdraw the balance in your account. The bank covers the amount you overdraw which you can reimburse later. With this privilege, returned checks are avoided. Adding this feature into your account could cost you a few bucks. Some banks, like the Bank of America offers this for free.
5. Federal Deposit Insurance Corporation (FDIC) Insured Account
The last but not the least feature to consider when opening a bank account is to make sure that the the firm where you keep your money safe is an FDIC-insured bank. This will give you an assurance that your money is secure in case of bank failure circumstances. FDIC insures deposit for at least $250,000. Find out whether the bank you are planning to open an account with is insured by this agency. Visit, www2.fdic.gov/IDASP.
5 Bank Account Features Your Money Needs
