One type of bank account that should never carry fees is a savings account. It’s the other way around: banks and credit unions should pay you for keeping your money stored with them, and they do this through the interest rate. The interest rate usually fluctuates throughout the year, and you can typically expect higher rates with web-based banks. Most online banks also offer a savings account with no monthly fees.
The only potential fee that SOME banks charge for savings accounts is a penalty fee for making more monthly transactions than whatever is the maximum number allowed. Each bank will list that number under its terms and conditions on its website. Each bank will offer a few different types of savings accounts, such as a regular account, high-yield savings, money market account, and more. Of course, there are always Certificates of Deposit accounts to consider too.
Just be honest with yourself about how much money you’ll be able to not just put in a savings account, but how much money you will be able to leave in it for the long term. Also, will you be able to put more money into it every month? If you’re not sure about these things, be careful with choosing a savings account with no monthly fees, as you still might be required a certain balance.
Another thing to consider is your checking account – especially if you plan on automatic deposits. Open a savings account with a bank that allows you to make the transfers with your checking account quickly and safely. Ideally, consider having both accounts at the same bank, but that’s okay if you already have a checking account at a bank you’re happy with.
Savings Account With No Monthly Fees and Good Rates
When looking into a savings account with no monthly fees, it’s essential to understand that the advertised APY % might be specifically for high-yield accounts. Therefore, you might get a lower APY % if you open a lower-tier account. Still, it might be the better, safer option in the long term since you’ll be less likely to need to access that money or go over the allowed withdrawal/transaction limit.
You might want to consider a few other things, including access to an ATM card (some are free per request), the minimum balance needed to open the account, and security protocols for the online banks.
An excellent place to start looking for a savings account with no monthly fees would be with Axos bank. It’s an online bank with up to 0.61% APY, savings accounts with as low as $250 minimum requirements, NO maintenance fees, NO monthly balance requirements (minimum), FREE ATM, and a suite of digital tools to help with money management and security.