Unless you plan on stashing your life savings in a shoebox underneath your bed, you will likely need to open a bank account to keep your cash!
Although the financial recession of 2008 shook our confidence in banks, they are now a safer place than ever to keep your cash because the federal government has insured each bank account for up to $250,000.
When you find the right bank account you will have the convenience of being able to manage your money through online banking and withdraw cash from an ATM. You might also be able to take advantage of other banking services as well as keeping your nest egg in a savings account which will generate interest.
Finding the Right Bank Account
There are so many different bank accounts which will offer you a range of different features and services. Finding the right bank account means thinking about your banking habits and choosing the account which fits your personal needs the best. Think about how much money you want to keep in your account, how many times you use your debit card, how many checks you write per month and what the fees for that particular account are.
You won’t get the best banking deal unless you take the time to compare the different accounts available. Luckily, these days you can use the internet to compare different bank accounts nationwide and search for the best fees, yields and interest rates.
When you choose a bank account you will want to select one with the option for online banking, as this service makes managing your money so much easier. You will be able to pay your bills online automatically, saving you a trip to the bank. You can also view your bank statement; check your balance, transfer money and much more, all from the comfort of your own home.
Watch Out for ATM Fees
When you use an ATM owned by another bank other than your own, you can be hit with a fee for a few dollars each time as well as the fee charged by the other institution. It might not seem like much, but these charges will add up so try to avoid using other ATMs to withdraw cash.
Banking without a Bank
There are also other options for checking and savings accounts offered by non-bank businesses. For example, a credit union operates essentially like a bank but is a non-profit member-owned cooperative which returns profits to its members. Credit unions often offer higher interest rates on saving and lower fees on checking accounts than commercial banks. The downside is that credit unions will usually offer fewer services and might have fewer ATMS.
Other options include money market mutual funds and cash management accounts, but these usually require a minimum deposit and are more designed for investments by affluent customers.
Take the time to choose the right bank account for your needs, as when you find it you will be able to grow your money safely there for many years.