A savings account is a smart place to stash the funds you're not using right away. Savings accounts keep your money safe and accessible while giving it a chance to grow!
However, not all savings accounts are created equal. Every bank or credit union has different rates, fees and features for their savings accounts. There are also several different types of savings options that can help you make the most of your hard-earned money.
When choosing a savings account, here are some of the factors you should keep in mind:
Interest rates/Dividend rates
Savings account interest rates or dividend rates (in the case of credit unions) you earn, and the corresponding annual percentage yield (APY) can very among financial institutions. Over time, the interest you earn builds on itself, helping your savings grow. As you research different savings accounts, be sure to compare their rates. One big benefit of credit unions is that they're member-owned cooperatives, which allows credit unions to generally offer better savings rates compared to banks.
Minimal, low fees
One benefit of a savings account is being able to keep your money in a safe place until you need to use it. But some financial institutions charge fees just for having an account with them, which can eat into your hard-earned savings! Ideally, you'll want a savings account that does not charge a monthly service fee, like Wright-Patt Credit Union's (WPCU) TrueSaver® savings account.
Initial deposit and minimum balance requirements
Most savings accounts require an initial deposit to open an account. Some accounts also require you to maintain a minimum daily balance. If your balance dips below that amount, you could be charged a fee. Look for a savings account which has a low opening deposit amount and low minimum balance requirement to avoid extra fees.
Another factor to look for when choosing a savings account is access and ease-of-use. With WPCU's savings accounts, you can access your money anytime, anywhere through our free Mobile and Online Banking services. Our convenient digital services make it easy to transfer funds to your linked WPCU checking account, deposit checks with your smartphone camera and more! You'll also enjoy ATM access wherever you go with over 40,000 lower-to-no fee ATMs nationwide.
When to consider higher-yield savings options
If you're ready to take your savings to new heights, consider a higher-yield savings option, like a Money Market account or Share Certificate. These options earn a higher-than-average rate of return than basic savings accounts, which can help your money grow even faster.
Opening more than one savings account
When you're saving for several goals at once, it's a good idea to open several savings accounts and label each for a specific purpose. Keeping your funds separated can also make it easier to resist the temptation to dip into your savings for everyday purchases.
Save Better with savings accounts from WPCU! Whether you're looking for a basic savings account or the highest-yield savings solution, WPCU has many smart savings account options to choose from!