Opening a new bank account may be an important part of your financial management but knowing what to look for in your new account can be difficult. Little details in the fine print of your agreement can be confusing, and they can vary based on whether you’re opening a checking or a savings account. Here are some things to look for while you consider opening your new checking and savings accounts:
Maintenance fees
Banks sometimes charge a monthly maintenance fee if you don’t meet certain conditions. These conditions can include keeping a minimum balance for the entire month or making a minimum number of transactions, and the fees themselves can vary by bank.
Overdraft or non-sufficient funds fees
These are fees that the bank charges when you don’t have enough money in your account during a transaction. In the case of an overdraft fee, the bank might cover the difference for the transaction and then charge you later. In the case of a non-sufficient funds fee, you lack sufficient funds for a transaction, but the bank doesn’t process the transaction.
ATM fees
Most banks charge a fee if you withdraw money from an ATM not associated with your bank. Some banks refund ATM fees, but others may not, so this can be an important factor when deciding where to open a new account.
Excess transaction fees
Many savings accounts have a fee for exceeding a certain number of monthly transactions on your savings account. This can include transferring money from your savings account to another account and making withdrawals.
Typically, you wouldn’t want to move a lot of money out of your savings account on a monthly basis anyway since you want it to grow. But if you anticipate regularly moving a lot of money out of your savings account, these fees could factor into your decision to open one.
Interest rates
The higher the interest rate for your savings account, the more money you can earn over time. As you shop around for the best savings accounts, keep in mind that some banks offer higher rates initially and then those rates change once the promo period ends. Also, the rates may be variable, so the rate you are offered initially may fluctuate with the market.
Inactivity fees
Failure to use your account for a certain amount of time, usually an extended period, can sometimes result in a fee from your bank.
Bonus for opening an account
Some banks will offer a bonus for opening an account with them. These bonuses can be a nice start to your account, but they also can be conditional on you depositing a certain number of times or maintaining a certain minimum balance. Make sure to understand these conditions before you get too excited about opening a new account.
Opening a new checking or savings account can be exciting and beneficial for your financial goals, but these different factors can play a big role if you don’t ask the right questions upfront. Understanding the fine print helps you save more money and lead a healthier financial life.
Disclaimer: Article content is intended for information only. It may not reflect the publisher nor employees’ views. Consult a financial professional before making financial decisions. Publishers or platforms may be compensated for access to third party websites.
Also Read: Secure Savings: Fixed Deposit Account
