The best kind of savings bank account is safe, competitive and able to increase the value of original deposit several times over. Finding it can be a complicated process, but, if done right, the results are very much worth it.
Understanding Savings Accounts
In savings accounts are bank accounts designed to hold your money for a long period of time. As time goes on, it gains value through interest, so the longer you keep it, the more money you will have. They cannot be used to write checks, and your ability to withdraw and transfer money is limited. The current US government regulations state that banks are allowed to authorize up to six transfers and/or withdrawals per month. US government places no limits on deposits, though some banks may choose to institute them anyway.
What to Look For In a Bank
Different savings accounts with different terms and conditions depending on the bank. Aside from the deposit and withdrawal limits, there are several factors you should consider in order to find an account that's best for you. They include:
- FDIC insurance - if your bank has it, the value of your savings will be covered should the bank go belly up.
- Required minimum deposit - some banks require you to keep a certain amount of money in savings account for as long as you keep it open. The minimum is different depending on the bank.
- Reputation - it never hurts to see if the bank usually delivers what it promises. This can be done by checking customer complaint websites are looking it up at Better Business Bureau's database.