When evaluating the merits of various savings accounts, you should focus on two primary aspects: the rate of return on your investment and the costs associated with maintaining the account.

Earning Interest

Every savings account awards interest, allowing your money to accumulate over time. However, the normal interest rate on savings accounts is less than one percent, which means that growth will be moderate at best. Consider the interest rate, which is sometimes expressed as an annual percentage yield (APY), so that you may choose the most suitable account while you evaluate the many possibilities.

However, you don't need to choose the account with the greatest interest rate. Be sure that the rate you obtain is reasonable in comparison to others. Other elements of the account, such as liquidity and costs, are more essential than the interest rate, especially when the amount in the account is lower.

Avoiding Fees

Your savings account's health may suffer if you continue to incur fees. Any fees might potentially wipe out your yearly gains or even lead your account balance to drop over time. This is because interest rates are now quite low. Before you deposit any money, you should thoroughly review the fee statement provided by your bank.

Basic Savings Accounts

At its most fundamental level, a savings account is a repository for one's financial assets. You put money into the account, it earns interest, and you can get your money out of it whenever you need it. You are free to make additions to the account whenever you see fit. In the past, restrictions were placed on the number of times a person may withdraw or transfer money without physically being at the location. But beginning in April 2020, such regulations will be suspended by the Federal Reserve to make things more comfortable for account holders.

Online Savings Accounts

• A high rate of return on your savings deposits
• Low or even nonexistent monthly costs
• No minimum balance requirements
• Innovative and cutting-edge technology

These accounts were originally made available by banks that were only accessible online. Nowadays, most conventional, in-person banks also provide digital banking services, such as remote deposits and online bill payments.

Outside of the geographic region in which they maintain a network of bank branches, some conventional banks may conduct their business more like an online-only bank. This is handy when you need to withdraw cash but no bank branch is in the immediate area. For instance, Capital One has a multitude of places at which it is possible to withdraw cash free of charge. You may use the ATMs of other banks without incurring additional costs, and some financial institutions, like PNC, will refund you for those expenses up to a certain maximum each month.

Self-Service

Customers who are financially independent and comfortable with technology are the ideal candidates for online savings accounts. You won't be able to seek assistance from a teller if you go into a branch since most of your banking will be done online. Managing your account, on the other hand, is not difficult, and if you need assistance, you can always phone customer support. You can fulfill most requests on your own, whenever and wherever it is most convenient.

Linked Account

To utilize an online bank account, you will often also require a traditional bank account at a physical location. This is the account connected to your profile, and it is most likely the account you will use to make your first deposit. When your online account is up and running, you will have the ability to make deposits from a variety of different sources. You may even deposit checks into the account using your mobile phone if you want to do so.

Spending Money

You may wonder, in the event that there is no physical branch, how you might get cash immediately in an emergency. Most internet banks also provide online checking accounts, which enable customers to write checks, pay bills online, make purchases and cash withdrawals using debit cards, and pay bills online. In addition, some online banks provide you the option to purchase cashier's checks sent via the mail.

How Many Savings Accounts Can You Have?

There is no regulation in place that limits the number of savings accounts that may be opened. Nothing can prevent you from opening a savings account at a bank if the bank is ready to do so. You may even create numerous savings accounts with the same financial organization if you want to.