subject: Savings Account Tips for Obtaining High Interest and Low Maintenance Fees [print this page] Savings Account Tips for Obtaining High Interest and Low Maintenance Fees
Many savings account providers offer high interest accounts and reduced maintenance fees to help consumers build wealth. Developing a savings routine allows consumers to reach financial goals. Building a nest egg provides peace of mind knowing funds are available if investment opportunities or unexpected expenses arise.
Contributing to a savings account can be difficult for people with more month than money. However, people often have more disposable income than they realize. Those who believe they cannot make regular savings deposits should review income and expenses to determine where their money goes.
Financial expert, Dave Ramsey recommends contributing at least 10-percent of income to a savings account. He suggests viewing savings deposits as a monthly bill. Just as people pay their bills each month, contributing to savings is just as important.
A simple way to create a savings plan is to establish a household budget. People often perceive budgeting as a chore, but reviewing personal finance and establishing financial goals is empowering and financially rewarding.
Being frugal has become a popular choice because it leads to financial freedom. Multiple personal finance websites can easily be accessed from home and allow individuals to research wealth-building techniques. Learning money-saving strategies gives individuals the opportunity to develop short- and long-term savings goals.
Once individuals create a budget and determine how much they can afford to contribute to their savings plan, it is time to research savings account providers. Spending an hour or two conducting research can help consumers locate the best rate of interest and lowest banking fees.
One exceptional resource for comparing savings accounts is BankRate.com. Visitors can view opening deposit and minimum balance requirements, interest rates, transaction fees, and account management fees.
Consumers should look for savings account providers that compound interest daily in order to obtain the highest return on investment. At present, high yield savings account earn around 1.4-percent interest, while traditional savings account earn approximately .62-percent. By comparing savings providers, consumers can potentially double earned interest.
It is also important to review fees assessed for obtaining paper bank statements or using ATM machines. Many banks and credit unions charge fees when savings account balances fall below minimum requirements or when consumers exceed monthly withdraw limits. Hidden fees can deplete earned interest and cost consumers more than they earn.
Most people can contribute at least five to ten dollars per week by eliminating unnecessary expenses. Giving up one fast food lunch or expensive coffee drink can add up to considerable savings over five or ten years.
Not having saved funds leads to anxiety and stress when unexpected emergencies arise. Individuals who do not regularly contribute to savings miss out on investment opportunities that could allow them to double or triple their money. People who want to attend college, buy a house, or make home improvements won't be able to afford the things they want because they did not plan for the future.
People who do not save money now will find it difficult to get ahead in the future. Now is the time to take control of personal finance. Start by opening a high interest savings account which can help your money grow and provide cash when you most need it.
