Prior to opening a savings account, the consumer should be sure to properly compare savings accounts. When comparing savings accounts, the consumer should consider the interest rate, if there is a minimum balance, and the accessibility of the accounts.

The first consideration the consumer should take when comparing savings accounts is to consider the interest rate. In today’s economy, interest rates on all lending products, including CD’s, money market accounts, checking accounts, and savings accounts are very low. While rates are very low, there are still banks offering high savings rates compared to other lenders.

The consumer should be sure to select the savings account which offers the highest rate because, over time, this will lead to significantly more interest income received.

The next consideration a consumer should take when comparing savings accounts is to consider the minimum balance. A minimum balance on a savings account can range from $0 up to over $50,000. Generally speaking, the higher the minimum balance is, the higher interest rate is.

The consumer should be sure to select an account which has a minimum balance requirement that is low enough to meet the consumer’s needs. If the consumer’s account balance falls below the minimum balance, they run the risk of being charged fees.

The last consideration the consumer should take when comparing savings accounts is the accessibility of the savings accounts. There are many online savings banks which offer slightly higher interest rates, but since these accounts do not have in-person branches, withdrawing funds can take longer.

Certain savings accounts come with debit cards which allow for withdrawals from any ATM.