Since several banks and credit unions are offering online accounts these days, most people are looking to start a savings account there. Sometimes, due to the higher than average APY % that they can offer. But, there are several savings account fees to keep in mind when opening an account. Some online banks have excessive fees, and some only a few – if any at all. You’ll want to open an account with as little fees and high APY as possible.
Typical fees include things like maintenance fees and excessive withdrawal fees. You can avoid both of these as long as you are careful to meet the particular bank’s specific requirements. For instance, the bank may allow a few free withdrawals every month. As long as your account doesn’t drop below the minimum requirement for your APY % tier, you may withdraw money.
Another way to get out of paying fees is to maintain a checking account with the same bank. This account helps you stop worrying about going under the minimum amount balance. You may opt to have an automatic deposit from the checking account into the savings account each month.
There are a few online banks that don’t charge any service or maintenance savings account fees. They also allow free transfer/ACH, incoming wire transfers, and check mailing. There might still be an outgoing wire transfer fee for domestic wire transfers. You can get an exemption if your accounts have a higher than average daily balance.
Savings Account Fees Should be Low
One thing to be careful about is an “account setup fee.” A bank should not charge you a fee to entrust them with YOUR OWN money. Not all online banks will charge this, so be sure to choose one that does not. As for closing the account, it depends on what kind of account it is. With a regular savings or savings builder account, the bank may not charge much for closing the account. If it’s a CD or Money Market Account, the bank may charge a penalty for closing the account early.
The process of opening an account should be not only a FREE process but an easy one. It shouldn’t be anything beyond entering your basic info, some ID, and then funding the account. Banks usually allow funding through electronic transfer, wire, or mail-in check. You might already even have a checking account with that particular bank.
Of all the online banks, the one that seems to charge the least savings account fees is CIT Bank. While it may not have the highest APY % right now, it makes up for that with the 0 fees and easy setup. Regardless of which bank you choose, read the terms and conditions about fees first.