Tips On How To Choose A Very Good Bank Account For You

When you want to reach financial goals, no matter which they are, you need a good bank account. This means you need to find an account with high interest rates, low fees, a very lenient overdraft policy, and other advantages. It does not matter if you just want to store your cash for a short time or a long time.

Choosing the best possible account type is all about finding one that perfectly fits the goals you have. You need to use services like LetMeBank in some cases, but working with a suitable financial institution is always a priority. This is why you need to consider these tips on choosing the best bank account for you.

Main Things To Consider

Some credit unions or banks give you access to the same account types but they are of different versions. All bank accounts are protected up to a maximum of $250,000, as long as the bank or the credit union is insured.

The important things to consider when you choose the best bank account are:

Fees – Always avoid the accounts that have associated monthly maintenance fees and ATM networks that are very small.
Overdraft options – The best account for you is the one that has an overall overdraft policy that is lenient.
High interest – Obviously, you want rates that are higher than 1 percent for all savings accounts.

Checking Accounts

This is used for everyday banking, like paycheck deposits, paying bills and withdrawing cash. You can access money in many different ways, like ATMs, personal checks and debit cards. Also, there is no limit on how many monthly transactions can be made.Even with a small transaction, you can overdraw the account. This means you need to be sure the overdraft policy is easygoing. Usually, the fee for overdraft is around $34. This can be charged many times per day.

Look for a checking account that will offer interest when you can keep cash there for a long time. Whenever this cannot happen, find the account that has zero monthly maintenance fees, gives you back ATM transaction fees and with zero minimum balance.

Savings Accounts

The basic savings account was created as a safe place to store money. When an emergency happens, like medical problems, you can access funds fast. The problem is there is a limit on how many transactions you can make every single month.

Many of the savings accounts offered by traditional banks have little interest. The current national average in the US is 0.07%, although some online options can bring in rates of around 1%.

When you look for the savings account, find the very best rate and be sure fees are low. The best of the rates are usually offered by institutions that only operate online and credit unions.

Cash Management Accounts (CMAs)

These accounts usually offer a higher interest rate than the brick and mortar accounts. They are thus great to park your savings. However, the CMA is not an actual bank account. It is a cash account that is offered by a financial service provider that is not a bank, as an investment company. Cash is normally stored with a third-party bank.

The CMA offers many useful services and features. You can have a cash management account and an investment account with the same provider. This allows you to quickly transfer money from one to the other. Withdrawing and depositing cash options are sometimes limited though so you need to fully understand the access level you have and what works well in your case. Simply put, you need to see if the features are beneficial and they are worth the potential drawbacks.