Highest Savings Account Rate Balanced With Costs And Fees

2007-03-08 10:33:40

( Financial )



When you consider keeping a portion of your money while earning interest at the same time, you often think of a deposit savings account. Banks, savings and loan associations and credit unions maintain savings accounts that pay interest, but you would surely want to deposit your money where you’ll get the highest savings account rate.

Before you can find the highest savings account, you need to understand the basics and compare saving accounts among banks. Savings accounts come in three types: passbooks, statement savings and money market accounts.

Passbook is the traditional type of savings accounts. When you deposit your money, the bank gives you a little book that records every transaction you do. Statement savings account is similar to passbook account but instead of a passbook, the bank simply sends you monthly statements that show all your transactions.

Money market accounts are the highest savings accounts among the three types of accounts. With money market accounts, you are permitted to write a maximum of three checks a month (to parties other than yourself) against the account. This makes it handy for you to draw and transfer enough money to pay your bills.

Some banks advertise that they offer the highest savings account rate. You should check if there are hidden costs and fees associated with the advertised best savings account. Be aware that there are banks that charge maintenance fees if your balance falls below a certain minimum during a month. And if you write more than three checks a month or you close within a certain period after opening your money market account , you’ll probably also get charged.

Make sure that when you compare saving accounts, you take into consideration not only the highest savings account rate but also the costs and fees. You might end up not saving at all if you don’t consider these items.


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