In our blog post Why Multiple Savings Accounts is a Good Idea, we discussed the benefits of having more than one savings account, but what do you need to know before opening a savings accounts?
Here are five questions to ask:
- Can I open multiple savings accounts? Major banks will often not allow you to open multiple savings accounts. If they do, they often have high minimum requirements. If you can maintain the minimums without fees, go ahead, but for many of my clients, they have to look to regional and online banks or credit unions which often offer multiple savings accounts with few restrictions.
- What are the minimum balance requirements for each savings account? If your goal is to save $200 for an upcoming annual expense and the minimum requirement is $500, that may not be the best bank for you.
- What are the fees for the savings account? Avoid fees! You’re SAVING money. You should not be paying fees. Look to CapitalOne360.com, Ally.com, and USAA Bank for low or no fee options.
- Can I title the accounts whatever I want? Some banks and credit unions allow customers to custom name their savings accounts — Emergency, Vacation, Vet Bills, etc. – making it easy to know which accounts have reached savings goals and which need to be fully funded. If you can’t customize the names, it’s going to be more challenging to know which account is for which expense. I recommend opting for customizable wherever possible.
- Is transferring in and out or accessing the funds easy and free of fees? Saving and transferring your own money shouldn’t be complicated or cost you money. Make sure it’s simple to transfer money in, out, and between accounts without fees or find another option.
You’re working hard to stick to your budget and save money. Your banking should be simple too.
For more information about how you can increase your savings or get a plan for managing your money, schedule a Eureka Session today.