Questions to Ask When Opening a Savings Account
From what to look for in a savings account to asking the right questions.
Savings accounts allow you to save your money easily and access it when you need it the most. But not all savings accounts are the same.
Some savings accounts, such as a Fifth Third Momentum® Savings Account, make saving for financial goals easier by charging no monthly fees and providing extra features to help boost your savings progress.
Finding the right savings account for you depends on your financial needs and aims. Gathering information about how your options compare can help you end up with the savings account that works best for you. Before opening a savings account, consider these five questions:
1. What Type of Savings Account Do I Need?
There are multiple types of savings accounts, and each one comes with advantages and considerations. A traditional or regular savings account, for example, gives you the ability to save money for near- or long-term goals. For example, you may build an emergency fund, save for a big trip, or plan your wedding. These accounts usually connect with your checking account and make it simple to save up and withdraw your funds.
A savings account like Fifth Third Momentum® Savings provide these essentials along with added benefits. Smart Savings, for instance, allows you to save money automatically in small amounts. And Scheduled Savings lets you save a predetermined amount each month or even week.
Other types of savings accounts such as a high-yield savings account, money market accounts, or specialized savings accounts provide specific advantages such as tax benefits if you’re saving for college, retirement or for a higher interest rate. In return, however, you may pay higher fees or face restrictions on when you can access your savings.
2. Is There a Monthly Fee?
Paying high fees to save your money seems counterproductive. Every dollar you can save helps you reach your financial goals that much faster. As you review savings accounts, explore whether they charge a monthly fee. A Fifth Third Momentum® Savings Account is free for savers who have a Fifth Third Momentum® Checking Account or maintain a monthly balance of $500 or more. If you have less in your account, no problem. The monthly service fee is just $5. There are also no fees for extra withdrawals or overdraft transfers. That means that all of your money works for you.
3. Does the Savings Account Require a Minimum Deposit?
When you open a savings account, some banks require that you begin with a minimum deposit, usually between $25 and $100. Higher minimum deposits can create a barrier to saving, making it harder to get started with an account.
However, with a Fifth Third Momentum® Savings Account, you can open an account with whatever amount works for you—no minimum. In addition, these accounts also have no minimum balance. That way, you can save toward goals, make withdrawals when you need your money, and then resume saving.
4. What’s the Interest Rate?
The interest rate is the money you earn from saving your money. Traditional savings accounts usually provide a lower interest rate than high-yield savings accounts, money market accounts, or savings vehicles that invest your funds. But higher interest rates typically come with other requirements. Ask about the interest rate and other account benefits that may help boost your savings.
For instance, Momentum® savings accounts enable you to set savings goals and track progress toward them. The Fifth Third mobile app also allows you to keep track of your savings in real-time, fine-tune your goals, and make transfers as needed. Little tools like these can go a long way toward accelerating your savings efforts.
5. Does the Savings Account Require a Minimum Balance?
Some savings vehicles require a minimum balance, usually about $300 to $500, to keep the account open. You may also face a penalty if your account slips below the threshold. Fifth Third’s Momentum® savings accounts don’t require that you have a minimum balance. But the bank does waive the $5 monthly service fee for savers who have more than $500 in their Fifth Third account.
Savings accounts provide a powerful tool for helping you reach your financial goals. Review the details of the accounts you’re considering and ask critical questions to ensure you understand the ins and outs of each option. Then you can choose the savings account that works best for you.
Apply for a Fifth Third Momentum® Savings Account Online
- Apply online with ease
- Skip the monthly service charge
- Use Smart Savings in our mobile app to save small amounts of money automatically
- Set up Scheduled Savings through mobile or online banking
- Add funds from your free Fifth Third Momentum® Checking Account