Choose The Right Savings Account
Once you've found the
right checking account, you'll want to start looking for the
right savings account. You only want to keep the minimum balance
plus any money you need for bills in your checking account.
There are two main factors to consider when choosing a savings
account:
Savings Account Interest Rate You want
a savings account with a high interest rate The interest rate is
the amount of interest that the bank will pay you on the balance
in your savings account. When you choose a loan, you want to
pick the loan with the lowest interest rate, but with a savings
account you're giving the loan to the bank and you want the
highest interest rate possible.
Savings Account
Minimum Balance
Some banks charge a fee if you go below
a certain balance, and others will just lower your interest
rate. You'll want a savings account with a low minimum balance
so that if you ever need a large portion of your money you won't
be charged fees or miss out on your rate.
Online
Banks
The highest interest rates and lowest minimum
balance can usually be found online. These banks don't have to
pay the overhead of rent and can pass this savings on to its
customers. One of the best online banks is ING Direct.