Everyone should be saving money for the future. It’s just a good idea to have a little something set aside in case of an emergency. Every month money goes into your checking account and then out of the account when you pay the bills, and hopefully, you have money left over for savings.
But hope is not the best financial strategy. A better strategy is becoming aware of your spending habits and having a plan to spend less money and save as much as possible. This is how you will save the maximum amount for the future. A good place to start to save money is to get a better checking account, with fewer fees and more opportunities to save and earn rewards. Here’s a rundown on checking accounts that will help you save for the future.
Minimum Account Balance
If you aren’t living paycheck to paycheck and have a cushion of some savings, find a checking account where you must maintain a minimum account balance. These minimum account balance checking accounts help you avoid banking fees such as account minimum balance fees and overdraft charges. Another advantage is that these types of accounts require you to stay aware of your balance and monitor your spending, so you don’t fall below the minimum balance. This way, you are more likely to spend less and save more. To further increase your savings, have the checking account and saving accounts linked; after you pay the bills, any money left over can be easily transferred into your savings account.
Free Checking Accounts
If you aren’t in a financial position to maintain a minimum balance, most likely because you’re living paycheck to paycheck, a free checking account may be your best option. Your best bet is to research online banks, small local banks, and credit unions. But keep in mind, some banks may have special fees like bounced check fees and wire transfer fees. When shopping for a free checking account, make sure there is free debit card usage, no low balance fee, no ATM access fee from the bank itself, and no charge for direct deposits into your checking account. By avoiding fees, you can begin saving money for the future.
Check for Hidden Fees
Not all checking accounts are the same. Some checking accounts have fees where you end up paying the bank to keep your money. When you set up a checking account, ask the bank representative about the fees and their amounts. All banks charge overdraft fees if your account balance falls into the negative and you bounce checks. According to WalletHub, some checking accounts can have up to 49 different fees. The average checking account has around 22 fees, and a consumer will pay around $200 a year in checking account fees. Get a checking account with as few fees as possible and stay within your balance limits to avoid fees, and you can save money for the future. National banks tend to have the most and highest fees. Community banks and credit unions have the least and lowest fees.
Checking with Rewards
Another smart move is to get a checking account that offers cashback or interest. Some checking accounts also have point systems, where you earn points as you spend. These points can be redeemed at certain national and online retailers. You can also select a checking account that gives you financial rewards when you use your debit card. With some cashback debit cards, based on typical home expenditures, you can bring home up to $30 a month in rewards. That’s a saving of $360 a year. Check out our Superior Checking Account. Forest Area Federal Credit Union’s Superior Checking Account has no monthly fee, no minimum balance, and earns up to 4.07% APY. Learn how you can make your checking account earn you more with Forest Area Federal Credit Union!
For more information about saving money for the future with your checking or personal savings account in Kingsley, MI, call Forest Area Federal Credit Union at 231-879-4154. We offer personal banking services that meet every budget.