Savings Accounts: Know the Basics
Most financial institutions will offer a savings account, but it’s important to look at the details of the account to make your best selection.
First and foremost, make sure you’re saving with a reputable institution where your money is protected by the Federal Deposit Insurance Corporation (or FDIC). Secondly, take note of the annual percentage yield (or, APY) on the account. This will indicate how much your money will grow while in the account. For instance, some larger banks will pay as little as 0.1% on a deposit, while others, such as PurePoint, can pay upwards of 20-times that amount. Finally, read the fine print. Some banks have balance requirements, monthly fees, and limitations on the amount of transactions you can make per month.