Choosing where to place your savings can be a difficult decision.  There are a number of different places that can be used for stashing your savings and some of these places are much more beneficial to account holders than others.  Here are some of the things that you should take into consideration when you are deciding where to stash your savings.

Safety

Being sure that your savings are safe should be your first priority when deciding where to save your money.  The place where your money is stored should be a member of the FDIC, which ensures that your money is insured in the event that the bank goes out of business.  The maximum amount of insurance per account is capped at $100,000, so amounts of more than this will require additional protection.

Costs

The costs of the account can be a big deterrent when deciding where to place your savings.  Many bank accounts claim that they are free but have fee triggers that kick in as a result of specific activity, such as going under a minimum account balance threshold or having too many transactions within a certain time period.  Be sure to calculate the amount of fees you expect to pay annually for the account and factor this cost into your choice of which account to choose.

Convenience

The costs of the account may not matter if you cannot conveniently access your saved funds when you need to.  Although savings should generally remain untouched until a great need arises, it can be important to be able to access your money quickly in the event of an emergency or when it is time to spend the money on the items for which the money has been saved.  Choosing a savings vehicle with easy access can be very convenient in a time of need.

Interest Rate

The interest rate that will be earned on your savings is another important consideration when choosing where to save your money.  Different types of accounts offer different interest rates for different saving terms, giving individuals a wide range of choices when it comes to where to place your money.  Some accounts require your money to be deposited for a certain time period before the account earns the interest promised, so be sure to inquire about this before opening an account.

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This entry was posted on Wednesday, August 10th, 2011 at 3:08 pm and is filed under tips. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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