Do You Have the Right Savings Account?

What do you do with a savings account? And do you need to have one? A savings account is great for storing money that you don't need right away. Why have a savings account over another account? This account also allows you to earn interest on those funds.

If you have a savings account, you probably know all of this. But how do you know if you have the right savings account? Ask yourself the following questions to find out:

First of all, do I need a savings account?

The answer to this question can be subjective, but generally it is recommended to have some type of savings account. These accounts are a safe, easily accessible place to store your money and often times have many advantages.

Does my savings account earn interest?

In most cases, yes. Money in a savings account generally earns interest at a variable interest rate. That interest is the bank's way of thanking you for keeping money in your savings account.

Am I getting a good interest rate?

If the interest rate increases and your account balance stays the same or increases, so will the amount of interest that is credited to your account at the end of the interest payment period. So it doesn't hurt to shop around for a higher interest rate.

Do I have easy access to my savings funds?

Nowadays, you can get easy access to your savings accounts. You can write a limited number of checks on a money market savings account, make an in-branch withdrawal, or use an ATM to get money. It’s important, however, to watch out for service fees. For example, some banks may charge a service fee for teller-assisted transactions. You may want to review the terms of your account to find out whether there are any fees, the types of fees, and the amount of the fees.

Is Online Banking included?

Online Banking is a great feature to have. You can view your savings account information and monitor your account 24 hours a day. You can also view images of your checks and transfer funds between your accounts. This convenient service allows you to conduct your banking in the privacy of your own home. If your bank doesn't offer this service, maybe you should consider finding one that does.

What is the minimum balance requirement for my savings account?

Some savings accounts require you to keep a minimum balance in it at all times. If you fail to do so, you will be charged a fee. Make sure you find out what the minimum balance requirement is. If you can't maintain it, you may want to look for a savings account with a lower minimum balance requirement or for one that offers other ways to avoid a monthly fee, such as by signing up for direct deposit.

Learn more about KeyBank’s savings account options.