Monday, July 21, 2008

What to Look for in a Savings Account

Each savings account has different features and what suits one person may not suit another. You may want your savings account to act as a place to stash that cash you are saving for a special treat like a holiday. In this case, you will look for high interest rates above other features. Low fees are always attractive, but if the fees are for transactions and you don't plan on doing any, then it won't concern you.

Compound interest is another thing to look for in a saving account, especially if you are simply saving for a rainy day and have no firm plans for a withdrawal date. While it can be tempting to withdraw and spend your interest, if it is left in the account you will be paid interest on your interest.

If you want your savings account to simply be a place where you keep all your money, and you intend to use it to pay all the bills that come in, then you will want other features such as free transactions and a chequebook. You may also want the choice of ATM, Bpay and other more modern ways of moving your money around. You will also need to be able to withdraw your money whenever necessary, so a cash-at-call feature is what to look for. Most accounts have a daily limit, so make sure yours has enough to service your needs.

No comments: