Choosing a Savings Account

Opening a savings account is always incredibly important, but especially these days. Whether you are young or old, employed or unemployed, savings accounts can help give you the financial security you need, protecting you from overdrafting and overspending. They can also allow you to better prepare for investments or unforeseeable circumstances. But it’s not all doom and gloom, because they’re useful for vacation planning too. No matter what you want your savings account for, there’s a ton of information everyone should know before they set one up. Choosing a savings account will require some time and research. You don’t want to just open an account haphazardly, only ending up losing a large portion to ridiculous fees. If you are interested in opening an account for yourself or another, check out these most frequently asked questions about choosing a savings account.

Frequently Asked Questions ( 8 )   Add a Question

  1. What are the interest rates?
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    Interest rates are great when it comes to savings accounts because they give you money rather than charge you more. Usually interest rates hover around .01% for a regular savings account and .03% for a Money Market savings account. Interest is usually compounded daily and then paid quarterly as is the case with Union Bank.

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  2. Can I get an ATM card for my account?
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    Some banks will offer free ATM cards attached to your savings account. You can use these cards to withdraw money from your savings at any time. Union Bank offers an ATM card with no fees for withdrawal or deposits at any Union Bank ATM.

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  3. Is there a service charge?
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    Service charges can easily cost you money in the long run, especially if you don’t pay attention to the fine print. While some banks may only charge you service fees if you don’t meet the minimum balance requirement to wave the fee, others may not charge a fee at all. But it’s important to make sure that there is no service fee or you can easily meet the requirements for waving the fee. In most cases you only need to pay the monthly service fee if your account has less than $300 daily.

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  4. Is online banking offered?
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    Online banking is a convenient and easy way to manage your savings accounts. While most banks these days offer online banking, you should make sure just to be on the safe side, and at the very least make sure there isn’t a charge for it. With online banking, you will be able to easily withdraw or deposit money into your savings as you need.

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  5. Can I set up automatic deposits?
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    Automatic deposits are a great feature if you frequently forget to put money away in savings, or if your child has a kids account that you frequently deposit money as an allowance. If you want this feature, be sure to find a bank that allows for automatic savings deposits.

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  6. What types of savings accounts are offered?
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    Banks offer a few different options for savings accounts. For instance, Bank of America offers a regular savings, along with a Money Market Savings and a Custodial Savings account. A regular savings is a great option for short-term investments and planning, while Money Market Savings accounts are used for longer term savings, offering higher interest. Custodial savings account or youth account can be used for children, allowing you free access to their account to make deposits as you will.

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  7. What is the minimum required balance?
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    It’s important to pay attention to the minimum required balance for savings accounts. Some accounts may have no minimum account balance required, while for others the minimum balance could be as low as $25, which is the case with Bank of America and Wells Fargo. Union Bank has a minimum deposit of $50.

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  8. Can my account be used for overdraft protection?
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    Often regular savings accounts can be used for overdraft protection, but you will want to check if you can and how you can activate this feature. Overdraft protection works by automatically depositing money from your savings account into your checking account in the event of an overdraft. Sometimes there may be a charge for this service.

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