Whether you’re saving for a car, want to save up for a down payment on a home, or are attempting to get yourself out of debt and into sound financial territory, opening a savings account should be considered an integral step. A standard chequing account simply does not pay the kind of interest that makes saving worthwhile, whereas investments in anything like stocks or real estate carry a degree of risk that you might not want to be exposed to. In contrast, the best savings account can offer high interest returns, provide a safe haven for your money, and help you get out of debt.
Offers and Benefits
Most major banks and other financial institutions offer some form of savings account, and finding the best savings account means finding the one that best meets your needs. Different accounts have different requirements, offer different benefits, and may even provide some benefits that are specific to you and your situation.
You may receive preferential rates if you hold a savings account and a chequing account with the same bank. Always take into account the special offers, as well as standard rates, when choosing the best account for you.
Consider the method or methods that you will most commonly use to deposit money. All accounts should provide you with a means of transferring cash from one account to another within the same bank, and you should also be able to deposit cheques.
Other accounts may allow for the free transfer of funds from an account with another bank, and many will allow you to have your salary deposited directly into the account every month. This direct deposit method can prove especially useful if you have struggled to open a chequing account because of a poor credit history, and this type of account may prove to be the best savings account for your needs.
Accessing your money is also important. If you intend to use the account as more of a day-to-day account, paying for goods and even paying for your bills, then look for accounts that provide unlimited debit card transactions and ATM or cash machine withdrawals.
Few accounts will provide these types of services for free, because the banks hope that you will keep your money in your account for longer periods of time.
Money and Account Management
Money management is critical, especially if you are looking to get out of debt and build a solid financial foundation. Internet banking is arguably the most convenient way to keep track of your finances, manage your deposits and withdrawals, and even budget for the months ahead.
Some people prefer telephone banking, while access to ATM machines can allow for quick and easy access to mini-statements and balances. Again, check that the account you are considering offers the access that you require.
Debt Recovery and Savings Accounts
Of course, the best savings account is commonly considered to be the one that yields the greatest return, which means that it has the highest interest rates. Consider how long you have to leave money in your account, whether it is a tracker that offers a number of points over a base or index rate, and whether any introductory offer will revert to a lesser rate before you are able or willing to withdraw your money.
If you are looking to rebuild poor credit, or recover from a poor credit history then contact a qualified and experienced credit counsellor by visiting SolveYourDebts.com, as well as opening the best savings account for your circumstances.