Which Savings Account is right for you

We all know how important to save some of our money for emergencies and things we want to purchase.  There are things to consider to determine which savings account is the best for you.  

One of the main things to consider is how much money you will usually have in your account.  Some have a minimum balance of usually $500 or $1,000 to maintain or else you will incur a monthly maintenance fee of about $10.  In many cases the accounts with larger minimum balances required will offer a higher interest rate. 

Determine if you need a debit card associated with your savings account.  You will be able to have an ATM card for your account to be able to withdraw money from almost any where you want to.  Many banks will not charge an ATM fee if you withdraw money from one of their banks.  If you withdraw funds from an ATM that is not affiliated with your bank you may incur a fee of between $2 to $5.  Some banks will refund these fees even  if the ATM is not affiliated with the bank. 

A money market is similar to a savings account that will pay a higher interest rate but requires a larger minimum balance of between $1,000 to $2,500.  Another stipulation of a money market is that you are only allowed three to six withdrawals a month.  Some money market accounts are similar to checking accounts and allow you to write three to six checks a month.  So a money market would not be a good option for you if you are not planning on maintaining the minimum balance requirement or you usually make several withdrawals during the month.

 If you have a sum of money that you will not to access for a while it may be wise to consider purchasing a Certificate of Deposit or CD.  When you put money into a CD, you agree to allow the bank to keep it for a certain amount of time, from 6 months to 5 years or more.  CDs usually offer a higher interest rate than a normal savings account.  If you put money into a CD and need to withdraw it before it is done, you will be charged a penalty fee. 

There are also online banks that offer savings and checking accounts, many with higher interest rates than physical banks.  When considering an online savings account, find out what the process is to withdraw funds.  It will take longer than driving to your local bank and withdrawing money.  It may take a few days to transfer money to your other account.

There are a variety of savings accounts, so it is important to determine which will be the best for you.