Which Savings Account is Right for Me?

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    • FNBO

      Nov 01 2023

Article | Read time: 3 minutes

A savings account is a great way to keep your money safe and earn interest on it. But with so many different types of savings accounts available, it can be tough to know which one is right for you.

Here are a few factors to consider when answering the question, "Which savings account is right for me?":

  • Interest rate. The interest rate is the percentage of your balance that the bank will pay you each year. Higher interest rates will help your money grow faster.
  • Accessibility. How easy is it to access your money? Some savings accounts have restrictions on how many withdrawals you can make each month.
  • Fees. Some savings accounts have fees, such as monthly maintenance fees or fees for ATM withdrawals.
  • Minimum balance. Some savings accounts require you to maintain a minimum balance. If you fall below the minimum balance, the bank may charge you a fee.

Once you've considered these factors, you can start narrowing down your choices. Here are a few of the most common types of savings accounts:

  • Traditional savings account: This is the most basic type of savings account. It typically offers a lower interest rate. There may be some restrictions on deposits or withdrawals. 
  • High-yield savings account: This type of account usually offers a higher interest rate on savings account than a traditional savings account. However, it may have some fees, such as monthly maintenance fees.
  • Money market account: This type of savings account typically offers a higher interest rate than a traditional savings account and allows you to write checks. Typically it requires you to maintain a higher balance.
  • Certificate of deposit (CD): This type of savings account locks your money up for a set period of time, in exchange for a higher interest rate. CDs are not as liquid as savings accounts, so you should only choose one if you know you won't need to access your money for a while.
  • Flex Savings: A flexible account that offers a locked interest rate like a CD but the flexibility of a traditional savings account.

The best savings account for you will depend on your individual needs and circumstances. If you're looking to earn the highest possible interest rate, a high-yield savings account, or CD is a good option. If you need easy access to your money, a traditional savings account, money market account or Flex Savings account is a better choice.

Here are some additional tips to remember:

  • Read the fine print: Before you open an account, be sure to read the terms and conditions carefully. This will help you understand any fees or restrictions that may apply.
  • Consider your financial goals: What are you saving for? If you're saving for a short-term goal, such as an emergency fund, you'll want to choose an account with easy access to your money. If you're saving for a long-term goal, such as retirement, you may want to choose an account with a higher interest rate.
  • Be patient: It takes time for your money to grow in a savings account. Just keep saving and over time, your money will grow.

Choosing the right savings account is an important decision. By considering your needs and goals, you can find an account that will help you reach your financial goals. If you have questions about setting goals and opening a savings account, a Personal Banker from FNBO would be happy to answer them. Give us a call today

The articles in this blog are for informational purposes only and not intended to provide specific advice or recommendations. When making decisions about your financial situation, consult a financial professional for advice. Articles are not regularly updated, and information may become outdated.