Savings Accounts

Critical Factors to Consider Before Choosing a Savings Account

Here are the critical factors that you should consider before opening a High Yield Savings Account:
1. Can you afford to make the required initial deposit?
2. How much interest is to be paid (APY)?
3. How long will the interest rate last?
4. How is the interest calculated (daily, monthly, quarterly, semi-annually or annually)?
5. Can you maintain the minimum balance required?
6. Does the bank allow linking of your account to your other bank or brokerage accounts?
7. How much will the bank charge you when you apply for your or set up a new High Yield Savings Account?
8. What additional accounts should you maintain?
9. The actual limit of your transactions;
10. How can you handle your deposits (i.e. mail, bank transfer, ATM, etc.); and
11. Other withdrawal options (i.e. checks, ATM).