Over time we have become accustomed to fees so we don't take them into consideration like we should. But fees should not be overlooked when starting a savings account because after all, what’s the point of depositing your cash if your interest is eaten up by fees? This is why you should hunt down a no fee savings account.
Let’s start with a look at the types of fees that you will need to hurdle. The most common one is the account keeping fee, which is a flat charge for your account every month. Other fees include charges for cheque deposits, transactions (if you reach a high volume), international transfers and payments, currency conversions, and ATM fees.
No fee accounts typically waive account keeping fees, and are “free” because of the low costs needed to maintain them. This is why they are commonly in the form of internet savings accounts.
With these accounts, all of your transactions are done electronically, and there is no paperwork involved when it comes to checking your balance, or opening and closing accounts. To sweeten the deal, they also consistently offer the highest interest rates for your savings.
Another no fee account is the student savings account. The idea here is that student incomes are often low, and fees will make a significant dent on their savings.
If you are studying an approved course and can meet the proof requirements of your financial institution, you may be eligible for a no fee account, similar to a transaction account. This means that the interest rate on your savings could be very low.
Children and pensioner accounts
Luckily there’s a no fee account for everyone, from kids who are just learning about savings, to pensioners who simply need an account for basic expenses. For example, a children’s savings account may provide high interest and incentives to help a child save regularly or towards a goal.
Financial institutions have tailored these accounts in dozens of different ways, so the rates and fees waived will vary.
If you believe that the only person who should be taking cash from your savings is you, then compare online for today’s highest rates on no fee savings accounts. By now, you should know that every dollar counts when it comes to saving for your future.