11 Thing To Look Out For Maximizing Savings In Your Account
There are certain things that one needs to keep in mind in order to maximize savings in bank account.
- Never pay monthly maintenance fees as it tends to eat up the major chunk of the interest earned. It is better to shift to online banks which charge you no monthly fees and no minimum deposit.
- Avoid brick and mortar banks, because the interested charged are very low. The online/internet bank gives better interest at no extra costs.
- Avoid bouncing of checks and non-payment of overdraft fees as this could affect your credit scores and give you lesser interest with the bank.
The interest rate may vary on the amount you want to open the account with. By law, it is required for all savings account interest above $10 is taxable. It is important to declare the income; however small the amount is to IRS. Customers with High Yield Savings Accounts Rates must be careful as the interest earned is significant. Tax Rates could be as low as 10% and as high as 39%. Avoid carrot and stick of the banks. Sometimes the bank may attract you with higher interest rates, however with time the interest rates might reduce along with the income earned. It is important to keep a close eye on the interest rates. Keep the money liquid, as Saving accounts offer flexibility that CDs don’t offer.
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