3 Questions To Ask Your Bank When Opening a Savings Account
Opening a savings account gives you higher purchasing power, security, and access to funds for emergencies and investments. Banks usually offer various free savings accounts for minors and adults, as well as personal savings and premier money-making accounts. Questions help you evaluate the benefits and concerns of finding suitable savings accounts. Here are a few questions to ask your bank:
What Should I Know About the Account Basics?
Opening a savings account involves deposits, interest rates, minimum balances, maintenance fees, and other requirements. While you can create free savings accounts, maintaining such accounts usually features a maintenance fee and minimum balance. Find out the minimum deposit and balance required to open and maintain the account. Ask the bank what happens if your balance falls below the minimum. Some banks offer waivers if you make a one-time deposit from your paycheck, but rules vary. Determine whether you prefer a fixed or variable interest rate and learn how the bank calculates it. Compare the potential gains from interest rates with the fees and penalties to determine if the account is worthwhile.
You can also ask about withdrawal fees and ATM usage or calculate how much overdrafts, return deposits, personal checks, and foreign transactions cost. Such calculations allow you to assess how account fees and costs affect your bottom line. Look for accounts with low fees, waivers, bonus schemes, and manageable balances to avoid extra fees. Asking for clarity about account basics allows you to find accounts suited to your budget and goals. You can ask for a breakdown of existing savings account fees during your initial consultation with the bank.
What Are the Access and Transaction Fees?
ATMs provide quick access to tangible cash and allow you to deposit checks using your savings account. You can choose a bank with an ATM near your home, work, school, or other convenient places. Some banks accept ATM deposits and don’t charge transaction fees within their network’s tellers. Others feature fees for non-network ATMs. You can also find ATM services on mobile payment apps that allow seamless payments without needing physical tellers. Ask questions about how much money you can deposit and withdraw from the account. Some savings accounts limit the number of monthly withdrawals and total transactions. Banks also offer online and mobile banking, complete with remote check deposits and account transfers.
Find out about the different transaction limits and fees, including penalties for early withdrawals and benefits for long-term savings plans. Ask about the ease of transferring funds from your account to another. Leading banks let you send money between checking and savings accounts with ease, especially if both accounts use the same bank. You can also send money between accounts owned by other banks and companies. Ask questions about access during international travels and the process for accessing your money while abroad. Banks usually provide debit cards, which work across local ATMs in various countries.
What Are Your Differentiating Benefits?
Leading banks usually have additional features and benefits that differentiate them from others. Special features include free Internet banking and e-statements to automatic savings plans, goal-setting tools, and account-opening bonuses. Ask whether you can make remote deposits using your phone or computer and if the account is insured by the FDIC and credit unions like NCUA. Some banks also offer linked accounts, so you can have a savings plus checking account with higher interest rates or reduced transaction fees.
Review the coverage limit for insurance, withdrawal policy, and account maintenance terms. You can find banks with no monthly fees, zero penalty for withdrawal, low opening deposits, and bonuses for new clients. Some banks also offer free instant ATMs and waived fees for several months after joining the platform. Ask about bank-specific suggestions, like ongoing promotions, customer support options, and account-specific rules and restrictions.
Open Free Savings Accounts Today
Savings offer financial backup and security during emergencies and other circumstances. Banks offer many accounts with unique features and benefits that suit specific people. Speak to a reputable bank today to learn more about free savings accounts.