I need advice on getting a savings account?

Question

I need advice on getting a savings account. Which bank has the most interest rate and which bank would you recommed I star using. Anything else I need to know I'm new at these things.

Answer 1

The banking industry is regulated and competitive so most banks offer the same interest rate, which is based on the current Prime Interest Rate. The Prime Rate is the interest rate charged on loans for the best customers of banks. It is set by the Federal Exchange Commission once a quarter.

Credit Unions operate with the same rules that a bank does with two exceptions. First their membership is limited in some way and they offer a higher interest rate; because the people who have accounts with them are considered investors in the bank as well.

There are several plans that have a better interest rate offered by each bank, but they are basically the same. A Money Market Account offers one of the best rates, but you need to keep a minimum balance in the bank; usually on the order of $1,000.

Most banks offer a free checking account that is tied to your savings account. If you don't have a minimum balance in your savings account; usually on the order of $100 then you get charged banking fees of close to $2.00 per quarter. One way to avoid paying the interest rate is to have an automatic deposit paid into your account.

An automatic deposit is most common associated with a job. Your paycheck isn't given to you directly; instead the paycheck is directly paid into your bank account thus making it easier for you and the company that is paying you. However, small businesses often do not have this service since it is more expensive than just paying you directly. When you get to a large scale then it becomes more economical.

If this is your first bank account then you are probably young and don't have a job yet. You can open an account at any bank or at any credit union that accepts you.

A credit union is required by banking law to restrict its membership. Typical restrictions are members of a company, teachers, members of the US military, or members of a federal organization. The good thing about a credit union is that membership is open to the person that is a member of their restricted group, members of the credit union, and their families. If you have a parent that works at a job there is a good chance that they have access to a credit union; once they do then they will always be a member as long as the account is kept open. If you grow up and marry and never work for the company, but keep an active account at the bank then you are still a member and your family members are eligible to open their own accounts.

Answer 2

The smaller the bank, the higher the interest rate, generally, but many small local banks have been bought up by larger ones in the last few years. You can get information about current rates by visiting bank branches, calling, or checking web sites (some banks do not post rates on the web, though, because they change frequently). Read the fine print carefully on any ad or sign regarding interest rates, because sometimes the "advertised rate" is only available with a minimum deposit of $10,000 or more, and you will get a lower rate with a smaller balance. Also be sure to ask about fees, which could eat up most or all of your interest if your bank charges you for minor things like calling them or receiving statements.

Find out if there's a credit union you can join -- they work much like banks but are nonprofit, and generally have good interest rates. Credit unions used to have strict membership restrictions, but now many are open to any resident of a certain county or something broad like that.

You may see ads for online-only banks like ING with great savings rates. The rates are indeed excellent, but they often only allow you to set up the account if you can prove that you already have an account with an "old-fashioned" bank -- so this may not work for you as a first-timer.

Good luck!

Answer 3

If you are interested in opening a savings account, check out the interest rates for banks nationwide at www.bankrate.com. They also have a calculator that allows you to project how much interest you will earn.

You will also notice at bankrate that the best interest rates will come from online banks. My only concern here is that you make sure the online bank is FDIC insured. You may also want to Google search the bank name to see if any negative comments come up.

Spending less than you earn and tucking money into savings is the first step towards acquiring financial independence, so I commend your efforts. I would also recommend you read some books by Robert Kiyosaki or Suze Orman to learn more about handling money.

To get free reports on creating wealth and various income opportunities available to you, you may want to visit:

http://www.wealthsearch.org

Answer 4

Most banks pay almost nothing on a savings account. They are usually less than 1%. You will have to purchase a CD at a bank that will pay 4%-6%. They have minimum terms and balances and must be left until maturity.

Answer 5

get a savings account in a bank that is convenient and is around everywhere you like to go.. BoA,*charges you for using ATM a lot, Transfer a lot, you would have to go inside the bank everytime if you pull out or deposit a lot..

Wells Fargo is convenient.. everywhere.. and offers you a credit card when you open a checking account with them.. which is always convenient.

**WaMu... also charges after so many transfers and there not that convenient or is many locations.

Answer 6

well where are you from? cant tell you if we dont know what banks you have access to. You should try unions. They are seperate branches kind of like bankds, but are more rewarding. Like here in ireland i have the credit union, also the permanent TSB is good for savings, especially around this time of SSIA

Answer 7

How much money are we talking about...best interest rates are at online banks or online accounts. ING is a good one(4.5%), HSBC Direct is good too(5.05%).

However, if its a small amount of money and you want it close by, just go to whatever bank your parenst use.

Answer 8

go around and ask them.. we dont know what banks are near you just say your interested in setting up a saving account and you would like to know what kind of interest you can gain from them..


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Answer 9

BofA... trusted network. your $$$ will be safe with them