Grilling Guide: Questions to Ask Banks About High-Yield Savings Accounts
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Do you require a minimum balance to open a savings account? And are there any fees for not maintaining a minimum balance?
Most banks don’t require minimum balances, so you may want to look elsewhere if they do. Of course, if you have a lot of money to squirrel away, this might be irrelevant.
Do you charge monthly service fees?
We don’t know of any banks that do this, but it’s worth asking just in case. Lots of checking accounts have these fees.
Are there fees for closing an account?
These are particularly obnoxious. Why should you have to pay a fee if the bank hasn’t been able to keep your business? Still, they’re out there—brokerage firms, in fact, often charge administrative fees to cover the cost of moving all of your account information to the broker you’re switching to.
Do you base interest rates on how much money I keep with you?
We don’t necessarily begrudge banks that want to treat their biggest customers better. Fortunately, not every bank does this. If you only have a small pile of money, don’t work with a bank that has different rates for people with different amounts of savings.
Can I link to any other external account that I want?
A good financial institution will not place any limits here.
Can I transfer money in and out as much as I want, or am I limited to a certain number of transactions each month? Are there fees for transferring money or doing so frequently?
Some banks may limit you to five or six transfers a month. This may not be a problem for many people, but if you plan to move money around all the time to maximize the interest you earn, then pay careful attention. For regular transfers, you shouldn’t pay any fees—and a frequent transfer fee should be small.
Is there ATM access?
It’s nice to be able get the money fast in a pinch. Then again, with such free access, it can be easy to spend money you intend to hoard.
Do you offer direct deposit?
Your paycheck is likely your biggest source of income. Why not stash it in an online savings account and move only enough money to a checking account to cover your monthly bills?
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