Do savings accounts save you money?
Many people think that a savings account is a great place to put your hard earned cash. But this isn't always the case.
When you are about to open an account to place your savings from your paycheck, or other sources of income, the first place people think is a bank.
After all, banks are guardians of our wealth, aren't they?
Banks want us to save money for our future, or maybe a rainy day... college or university tuition fees, banks want us to save to succeed later in life, right?
Well this may surprise you but banks are not all that sacrosanct. Banks are in the money business to make money for themselves and not necessarily you. Understanding this will make every other choice you make about banks, savings accounts and all other dealings with banks much easier.
Many people will shop around for the best interest rate for their new savings account, not realizing that just as important in the savings interest rate payable to you are the charges that your account incurs that are payable to the bank.
Read the bank's transaction fee schedules and understand what you will be charged for in your everyday transactions with your money in their bank.
Do you know that some banks charge for every teller transaction you make? That means you could even be charged a fee to deposit money into the bank! And, of course, there may be a minimum monthly balance needed in the account to avoid other charges, such as statement fees, account fees, withdrawal fees, bill payment fees, debit transactions fees... the list is only limited by the bank's ability to think up new ways to separate you from your money.
Read the fee schedules, understand what you need to earn interest rather than pay fees with your account.
A bank's high rate of interest really doesn't matter if you never earn it!
More Resources
- Living On A Dime - Financial Independence Through Better Life Choices. Publisher Of E-books About Paying Off Debt, Saving Money, Frugal Cooking And Homemaking.
- Everything You Know Is Wrong! About Being Debt Free That Is!! And It Will Keep You In Debt The Rest Of Your Life!
- CREDIT SECRETS BIBLE™ - If You Can Read And Write at the 5th Grade Level Then YOU Can Discover The Secrets To Raise Your Credit Score up to 249 Points In 90 Days... So You Can Start Being APPROVED For The CAR, HOME, Business Loans, and CREDIT CARDS You Deserve!
