There are two basic types of savings accounts, including passbook accounts and high yield savings accounts. Passbook accounts tend to be more flexible than high yield savings accounts. While it is possible to use checks with a passbook account, checks are not usually part of a high yield account. Many banks offer a free savings account to new customers, and both types of savings accounts mentioned are usually free.
When looking for a free savings account, it is important to consider how much money you want to place in an account. While some banks do not require you to have a minimum amount of money inside of your account at all times, this is not always the case. Another important aspect of any free savings account is the number of withdrawals you are allowed to make each month.
Some banks place limits on the number of withdrawals per account, while others charge customers fees if too many withdrawals are made. If you think that you will have to access your money on a regular basis, choose an account that does not limit withdrawals. In addition, find out how accessible an account is. While many banks around the world allow users to access funds through automatic teller machines, the Internet, and via phone, some banks require an in-person signature in order to deposit or withdraw funds.
Lastly, take a look at the amount of interest you will earn with your savings account. As a general rule, a savings account will not accrue a large amount of interest, though some banks offer better interest rates than others. To find out what kind of interest an account will earn, speak with a customer service representative at every bank you are considering.
While shopping for a bank based on interest rates is one way to find a good free savings account, it is wise to consider all of the information mentioned above before deciding upon any one bank. Compare rates, account types, accessibility, and overall customer service before choosing a free savings account. All of these factors combined will help you find the bank that will put your money to work for you.
To find a bank in your area, look through the phone book, search the Internet, and ask for personal referrals. Sometimes, finding out what banks your friends and family members use is the best way to find a good bank. A free savings account can be a great way to save your money, but only if you find a bank that works with your saving habits.