Equifax

Finance Blog

Money Management Tips: Choosing the Right Savings Account

Written by Equifax Experts on October 17, 2011 in Credit  |   1 comment

In the first two parts of the money management tips series, we discussed the importance of paying yourself first and setting savings priorities. Both are key steps toward saving for tomorrow – and both are easy to accomplish. (Discover how by reading parts one and…

In the first two parts of the money management tips series, we discussed the importance of paying yourself first and setting savings priorities. Both are key steps toward saving for tomorrow – and both are easy to accomplish. (Discover how by reading parts one and two: Pay Yourself First and Build Your Savings Pyramid).

Once you know what you’re saving for and you’ve identified basic steps toward achieving these savings goals, it’s time to roll up your sleeves and examine your savings options.

There are an abundance of savings account options from which to choose, but don’t stress over trying to decide which savings accounts best match your savings goals. This basic outline of the main types of savings accounts to consider will help differentiate one kind of account from another.

Remember to check out the Banking and Loans Center for the best interest rates, loan information, and more. It’s fast, easy, and can save you a trip to the old brick-and-mortar banks.

Savings accounts

Savings accounts aren’t offering very high rates right now, but they’re still a good place to keep short-term, liquid savings. (Remember the savings pyramid?) Consider online savings accounts.

Online banks are able to keep rates relatively high by limiting the ease (and speed) with which you can draw on your funds; there’s usually no check writing or ATM access with online savings accounts. To access your cash, you transfer it online or by phone to a brick-and-mortar checking account.

Always look for the FDIC logo. If putting your cash in a virtual bank account makes you uncomfortable, remember that up to $100,000 is protected in an FDIC insured bank. To start, check to see if your local bank or credit union offers an e-savings account.

Money market accounts

While similar to a traditional savings account, a money market account (MMA) differs in several ways. Typically, MMAs require a higher minimum balance but pay higher interest rates. They limit the number of withdrawals you can make, but many will allow you to write up to three checks each month. Fees may be incurred if you fall below the minimum balance or make too many withdrawals.

Certificates of deposit

Certificates of deposit (CDs) are savings accounts set up for a specific amount of time to earn interest, usually at a faster rate than a regular savings account. You can only access your money after a certain amount of time. If you take your money out earlier than the maturity date, you usually have to pay a penalty.

Interest checking accounts

Although a checking account that pays interest may appear more attractive than one that does not, it is important to look at fees for both types of checking accounts. Often, checking accounts that pay interest charge higher fees than regular checking accounts, so you could end up paying more in fees than you earn in interest.

READ MORE:
Pay Off Debt and Take Advantage of Low Interest Rates
Identity Theft: What To Do If Your Wallet Is Lost Or Stolen
4 Tips for Savvy Yard Sale Shopping
Need Extra Cash? Host a Yard Sale
Lost Your Job? Here’s How to Manage Your Money and Protect Your Credit Score

1 comment

  1. california bankruptcy says:

    Best of all, this California Guide has a Money Back Guaranty. If you are not satisfied with the California Guide you buy on this website, I will send you a refund- no questions asked.
    california bankruptcy


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Credit Archive

Stay Informed Sign up for our FREE Equifax email Newsletter