Is 2022 the year you focus on your finances? Whether you are going all in by starting a budget, building your savings and consolidating your debt or you want to start small by tackling one area of your finances, it’s never too early or too late to get started.
If you are looking to build your savings account to have an emergency fund or save for a big expense (such as a wedding, vacation or down payment on a house), here are a few savings account questions to consider before opening a new account.
7 questions to ask when opening a savings account
With so many banks and credit unions offering a variety of savings account options, it can be easy to get overwhelmed with all the options to consider. Use these savings account questions to help you weigh your options and find one (or more) that are right for you.
- Is there an account opening fee? Some banks and credit unions charge a fee when you initially open your account. Before you sign on the dotted line, be sure to ask (or do your research on the financial institution’s website) to see if there are any account opening fees. There are zero account opening fees with all Verve’s saving account options.
- What are the rates? Most savings accounts at credit unions earn dividends, meaning the credit union pays you a certain rate for keeping your money in a savings account with them. That means you can grow your savings simply by keeping it in a savings account. Rates vary from one financial institution to another and can be anywhere from 0.01% APY in a savings account to 0.50% APY in a share certificate account.
- How much do I need to open a savings account? At Verve, a $5 minimum balance is required to open an account while many financial institutions require higher amounts to get started.
- Are there any monthly fees? Minimum balances are common to avoid fees and at Verve you can avoid the fee by maintaining a $100 combined average daily deposit balances or by having an active loan balance. Some of the other fees at Verve include Non-Sufficient Funds/Courtesy Pay, Overdraft Transfer and Negative Balance Fee. See all fees here.
- Can I access my savings account on my phone? When looking for a savings account, ask the financial institution you are working with if they have an app you can use to access your savings account, as well as if you can use online banking to make transfers to and from savings. At Verve, you can access your savings using the Verve mobile app or online banking.
- How many transactions can I make? Check with your financial institution to see if there are any limits on the number of transactions (such as transfers to and from savings) you can make with your savings account. At Verve, our savings accounts allow you the freedom to make as many transfers as your budget requires.
- What options are available to help me stay on track with my savings goal? This is a big question to ask when reviewing your options. See what resources each financial institution has to help you set and stick to your savings goals. At Verve, there are a variety of ways we help members stay on track with their savings goals, such as the savings tracker in online banking, the Pick Your Payout account to keep your savings locked up until the date you select or the Save to Win account, which includes the extra incentive of prize drawings to help you stay motivated to meet your goal.
The one question to ask yourself before opening a savings account
The eighth, and we would argue the most important, question to ask before opening a savings account is:
- What am I saving for? Are your eyes on building an emergency fund, taking a tropical vacation, buying a new car or something else entirely? Determine your why and write it down, tell others and keep it front and center so your eyes are always on the (savings) prize. Whatever your savings goal is, use it to guide you as you evaluate savings account options.