Do you want to get your spending under control and make your finances go a little further? Are you looking to make sure you always have access to some money stored away, whether it’s paying for that wedding outfit or a trip to the Bahamas with the ladies? Then you are probably in the market for a savings account. Before you choose one of the many banks in Texas, such as Guaranty Bank in Austin, check out our guide and some great tips for finding a good savings account.
Always Shop Around and Don’t Just Pick the First Bank Account You Come Across
While that bank at the corner of the street where you live or in close vicinity to your place of work or home might offer you convenience, it doesn’t necessarily mean it’s the best bank for your savings account. It always pays to shop around, comparing the interest rates offered on savings accounts from different banks. Don’t limit yourself to just banks though, as you may find a better deal with a credit union.
Consider Online Banks
It is often the case that online banking institutions offer higher interest rates on savings accounts than traditional physical ones. Are you concerned that your money might not be safe with an online bank? If you stick to one monitored and whose accounts are fully insured with the FDIC or Federal Deposit Insurance Corporation, your money will be safe. The reason they can offer higher rates of interest is because they don’t require as much money to run and operate as they don’t have a fully functioning branch or chain of branches.
Beware of the Dreaded Bait and Switch
There ae many banks who use the power of a seemingly high interest rate to entice you to open an account with them or switch your current savings account to theirs only to reduce the rate within the first couple of months. While it is completely true banks have the power to raise or reduce the interest rates on their savings accounts, many promotional or introductory rates exist fleetingly. So always read the fine print before signing anything and research everything thoroughly.
Always Read the Terms and Conditions
Following nicely from the above, the next tip we have is one that a lot of people just disregard when choosing an account. It’s crucial, even if you have extensive experience opening and managing savings accounts that you read the terms and conditions for these accounts. No all financial institutions offer the exact same T & C’s, so don’t just accept your knowledge of interest rates or anything else as a standard.
Set Up Automatic Savings
It’s a sensible decision to have a savings account that is paired up with a checking account. Then you can have your earnings directly deposited into the checking account and automatic transfer set-up to put a percentage directly into your savings account. That way, you don’t even have access to your savings and are less likely to spend it.