Savings Day – Where to Bank
Are you wondering where to open a savings account?
Savings accounts are still a safe place to deposit savings as long as they’re guaranteed by the FDIC – that’s the Federal Deposit Insurance Corporation or the NCUA – the National Credit Union Administration. They cover $250,000 per depositor, per institution. In addition to online options, credit unions and local banks are a great alternative to big banks. The Consumer Financial Protection Bureau reported that fees were 13% to 19% lower at small banks and credit unions than the big banks last year. Credit unions are owned by their members and are not-for-profit. They’re known for offering excellent customer service, lower fees and better interest rates. Plus, they have flexibility to meet needs. Local banks are owned by investors and shareholders but don’t have the bureaucracy of large ones.
Developing relationships locally makes it easier to get personal service and loan approval. They may have fewer financial products but those can be offset with low or no-fee accounts and services. Local bankers know your community and you may benefit from working with the same banker over years and years. If you live in a small town and prefer to keep your financial situation anonymous, you may prefer a large bank or online option. After saving 6 months of living expenses, consider putting anything extra in different products or investments where you can earn more interest. You probably worked hard to accumulate your savings. Seek wisdom to steward it well.
Now if you’ve been blessed with My MoneyLife, I invite you to discover the Crown Stewardship Podcasts. They focus on helping you find freedom in your finances and career. You can subscribe on Spotify and iTunes, or listen at Crown.org.