How to Decide on Chequeing and Savings Accounts
Choosing the right bank accounts can be a difficult task...
after all, you're making major decisions that can directly
affect your finances. Unfortunately, there isn't a catch-all way
to look at choosing different types of bank accounts...
chequeing and savings accounts have different considerations and
should be looked at from different viewpoints before making your
decision on either.
This article is intended to provide you with some of the things
that you should keep in mind when looking for either a chequeing
account or a savings account, and will hopefully be helpful in
making your final decisions.
Differences in Chequeing and Savings Because they deal with your
money in different ways, you need to make sure that you don't
look at chequeing and savings accounts as though they're the
same type of account. Savings accounts pay you interest on the
amount of money that you keep as a balance, whereas chequeing
accounts generally do not of course, some do; others may charge
account maintenance fees, however.
On the other hand, cheques allow you to easily access the money
that you keep in your account multiple times (until you run out
of cheques or run out of money), while most savings accounts
charge you fees for exceeding a certain number of withdrawals
each month.
It's important to keep considerations such as these in mind
while looking at potential accounts... decide what you want the
account to be used for and the features that will be beneficial
to that use, and then look for the best account whose features
meet what you're looking for.
What to Look For in Chequeing Accounts In order to find the
chequeing account that best suits your needs, you should look
for one that allows you to write unlimited cheques while not
charging you additional service charges for doing so. If
possible, you may also want to try and find an interest-bearing
chequeing account... though the interest rate is likely going to
be less than that of a savings account, even a little bit of
interest will pay you more than you had previously. You should
also make sure that you know whether your cheques are provided
by the bank, or whether they have to be purchased separately.
What to Look For in Savings Accounts
One of the most important things to look for in a savings
account is the interest rate that is paid on your account
balance. Take the time to shop around at different banks and
compare the interest rate that each offers, making sure that
you're also finding out additional information such as the
number of withdrawals allowed each month and any other fees or
charges that might be incurred with the account.
You may also wish to find out whether or not the account can be
linked to a chequeing account to help you avoid overdraft
charges, or if the savings account that you're considering
offers additional features that you might not initially be aware
of.
Accounts at Multiple Banks
Just because you have an account with one bank doesn't mean that
all of your accounts have to be with that same bank. Feel free
to shop around at different banks and open accounts at more than
one of the banks in your area.
You should check with the various banks that you're considering
and see whether they offer any bonuses for loyalty of having
multiple accounts with them... not all banks do, but those who
choose to offer them can make your banking experience much more
pleasurable.
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