This article looks at how Americans can get better returns on their banking investments. Are more people using credit unions? If your bank offers low interest returns on savings accounts etc. is it time to move to another one? Many banks collected an enormous amount of fees from customers yearly. How can consumers cut down on these?
Bank on Better Savings
Why do you do business with your bank? Is it because that is where you started years ago, where you opened your first checking account? Maybe your parents do their banking there and you just continued on. While we often shop around for a new car, appliances and even insurance, many people are happy to stick with the same financial institution for years. Shouldn’t you find out where you get the best deal for your money in your choice of banks, too?
Helping You Earn Money
Many people do not look at banks as investment tools in the same way they do with stocks and other resources. However, you should compare your rate of return on CDs, money market accounts and even savings accounts with what other banks offer. According to the Credit Union National Association, membership in these institutions is over 100 million now, which is about one-third of the people who use either a bank or credit union.
One reason for this surge is the fact that credit unions often pay higher interest rates on savings accounts than banks. Even if you keep the bulk of your investment money in other types of funds, you want to make as much income as possible on your lower-yield accounts. For example, many people like to have a savings account for easy access to extra money in the event of an emergency. They often think very little about how much money it brings in through interest. However, you can accumulate quite a bit over time if you look for the institution with the highest rates. The same goes for CDs, too.
Helping You Save Money
Banks make most of their income off of fees. Account fees, overdraft fees and other charges can add up when multiplied by the number of customers. If you have to pay out for fees on a regular basis, you definitely want to shop around. One of the biggest ways to save money with a financial institution is to look for free checking.
Consider the other charges you pay such as ATM fees if your bank doesn’t have enough locations. Compare those fees with other banks to figure out if it is time for a change.
Find the Right Deal
When it is time to renew your CD, take the time to shop around. You might be surprised at how much more money you could be earning with another financial institution. With the growth of online banking, you can even look beyond your local banks. Since some of these facilities are online-only, they have lower overhead and can pass the savings on to their customers in the form of lower fees and higher interest rates.
You are no longer limited to your local bank, thanks to modern technology. Take advantage of your options by shopping around to find the best financial institution. Look for one that saves you money with lower fees and helps you earn more with better interest rates on your investments. You look for the best deal when spending your money, why not look around for the best resource when saving it?
Joyce Morse is an author who writes on a variety of topics, including finance and banking.