High Importance of Different Bank Accounts
A rite of passage for many is the opening of that first bank account. Bank accounts are a necessary means of conducting financial transactions. The money can be deposited into a checking, savings or money market account. Banks have varying interest rates on savings and money market accounts. A growing number of banks also pay interest on checking account balances.
Money is deposited into an account at a trusted bank. These funds are then available for the account holder to use. Until recently, when money was needed, the account holder would write a check and the correct amount of money would be deducted from bank accounts. Thanks to the internet, most banking transactions can now be handled completely online. Some people never even see most of the money that moves through their accounts.
In the past, people banked at their community banks. Every town had a couple of well-established banks and the majority of an individual’s banking was conducted as that bank. Today, consumers have diversified their banking habits. Savvy consumers shop around for the best interest rates when saving, investing or borrowing money. It is not uncommon to have several accounts in a variety of banks.
Most customers rely on a traditional bank to maintain their checking and savings accounts. In recent years, however, totally online banks have emerged on the financial scene. Without the high overhead of traditional banks, these online banks may be able to offer more attractive interest rates.
With so many banks to select from, how can a consumer decide which bank accounts best suits their needs? Drive through any community and you will likely see several banks to choose from. There are a few simple rules to help you find the best bank accounts for your needs.
First and foremost, make sure that the bank you select is FDIC (Federal Deposit Insurance Corporation) approved. The FDIC is an independent agency created by the federal government to maintain public confidence and to ensure stability in America’s banks. It does this by guaranteeing the safety of the deposits in member banks.
The next thing the consumer needs to determine is the amount of interest the bank pays on various accounts. It is also important to consider the amount of fees the bank may charge for services. Many banks offer no-fee checking accounts. Some others charge nominal fees to maintain checking accounts. All banks should be able to provide consumers with a published list of interest and fee rates.
With the huge number of banks in operation in this country, it can be time consuming to conduct all this research. We can help you find the best bank accounts for your needs. We have researched and reviewed most banks and can even provide customer reviews of the various banks.
Whether you are looking for bank accounts in new checking or savings account, credit card or car loan, we can provide you with the latest information from most major banks. Our research can save the typical customer some real money. When considering a home mortgage, our website can provide you with competitive interest rates from a variety of banks. Over the life of your mortgage, even a one-percent difference in the interest rate can add up to significant savings. That is real money that you can put in your pocket. Or even better, put that money into a high-yield money market or savings account. We can point out the banks paying the highest interest. In these troublesome economic times, it makes sense to save money wherever you can. As Ben Franklin said, “A penny saved is a penny earned.”