Passbook Savings Account

When looking to open up your next passbook savings account, there are a few questions you need to ask yourself before taking any action.

Many people fall prey to laziness and simply walk into any bank and sign up with the first savings account presented to them. What I want to express to you is that you do have choices.

What is the best bank to choose? When choosing your bank you need to consider a few things:
I.  Location and Accessibility

* How often will you be visiting the bank?
* Is the bank in an area that you visit often?

For example, is it next to your house, work, mall, etc..? Think of traffic. In rush hour, will you need to sit in traffic for an hour simply to deposit your weekly paycheck?

II. Interest Rates

* Does the bank offer a way for you to earn a percentage while you save?
* What is the percentage rate offered by this bank and how does it compare to other banks?

If your money is sitting in a bank account, have your money work for you. Have your money make you money without having to think about it. Be sure to look at interest rates and compare various benefits. Some banks offer a difference of 2% on interest rates in their passbook savings account. This can add up quite a bit over time.

III.  Additional Benefits

* What are the additional benefits the bank offers with your savings account?
* Will you get free checking with free checks?
* Is there online banking where you can view your account from the comfort of your home?
* Is there overdraft protection?

Will you have to pay a monthly fee for your savings account if you don’t hold a minimum balance? Consider everything your bank can offer and don’t underestimate optional protections. We’ve all been there, you inadvertently withdraw just a little too much money and bam, a 25 dollar overdraft fee. Will they reverse this fee for you? Will they protect you somehow from this happening?

IV. Customer Service

* How long does it take to reach a teller when you walk into the bank?
* Do they remember your name or treat you like another number?
* What is the feedback from other customers?
* Will you speak to a representative at your bank when you call or be routed to India?

Ever have to stand in line for 20 minutes to do one simple task? I have, and I hate it. Customer service is the most important thing I consider when looking for a new bank. When I go to my bank, I want to be in front of a teller within 5 minutes. And it never hurts to be greeted by name. What can I say; the small things really do matter. You can also research more about the bank online and read posts from other clients to see what they say about a particular benefit or service from the bank.

How about when you call? Will you be charged by your bank to make a simple customer service charge? Money doesn’t grow on fees – as one popular savings bank put it.

When you are looking for your next passbook savings account, there are quite a few questions to consider. Just like everything else that is important to you, there is no one size fits all. There may not be a savings account that will be perfect for everyone.

So remember, the four areas of consideration: location, interest rates, additional benefits, and customer service.

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