Questions to Ask Before You Open a Savings Accounts

Savings accounts let you set aside money easily and access it when you need it the most. But not all savings accounts are the same. Some—such as a Fifth Third Momentum® Savings Account—make reaching financial goals easier by charging no monthly fees if you meet certain requirements and providing extra features to help boost your savings progress. If you’re wondering what to look for in a savings account, first consider your financial needs and aims. Then, gather information about how your options compare. Asking these 11 savings account questions can help you narrow down the best choice.

Key takeaways:

• Savings accounts come with various features and capabilities. It’s important to find one that matches your unique needs.
• When comparing savings accounts, consider such factors as how you plan to use the account, how often you expect to withdraw money, how much interest you can earn and whether a minimum balance is required.
• There are several ways to deposit money and make withdrawals. Understanding all your options can help you build your savings faster and achieve your financial goals.  

1. What type of savings account do I need?

There are multiple types of savings accounts, and each one comes with advantages and considerations. At the most basic level, a traditional or regular savings account gives you the ability to save money for near- or long-term goals. For example, you may use it to 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 deposit money and withdraw your funds.

A savings account like Fifth Third Momentum® Savings provides these essentials along with added benefits. A feature called Smart Savings, for instance, allows you to save money automatically in small amounts. And the Scheduled Savings feature lets you save a predetermined amount each month or week.

Other types of savings accounts such as a high-yield savings account, money market account or specialized savings account provide specific advantages. For example, a 529 savings account offers tax benefits if you’re saving for college. In return, however, you may pay higher fees or face restrictions on when you can access your savings.

2. How do I compare savings accounts?

First, consider the features that matter the most to you. Then see how different accounts measure up. If you’re most concerned with growing your savings, you might look for the account that will pay the highest interest. You can also size up different savings accounts by seeing what fees they charge or whether they require you to maintain a minimum account balance. If automating your savings is important to you, a savings account like the Fifth Third Momentum^® Savings Account can let you schedule automatic transfers from your checking account to your savings account.

3. Is there a monthly fee?

Paying high fees to save your money seems counterproductive. Every dollar you save on fees 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 only $5. There are also no fees for extra withdrawals or overdraft transfers. That means all your money works for you.

4. Does the savings account require a minimum deposit?

Some banks require a minimum deposit typically between $25 and $100 when you open a savings account. Higher minimum deposits can create a barrier to saving, making it harder to get started with an account. But with a Fifth Third Momentum^® Savings Account, there is no minimum deposit. That way, you can get started with saving no matter how much money you have.   

5. Does the savings account require minimum balance?

Some savings vehicles require a minimum balance, usually about $300 to $500, to keep the account open. Fifth Third’s Momentum® Savings Account doesn’t require you to have a minimum balance. But the bank does waive its $5 monthly service fee for savers who have more than $500 in their Fifth Third account.

6. What's the interest rate?

The interest rate is the money you earn on your savings. Traditional savings accounts usually provide a lower interest rate than high-yield savings accounts, money market accounts or Certificates of Deposit. But higher interest rates typically come with other requirements such as the need to maintain a higher minimum balance. Ask about the interest rate and other account benefits that may help boost your savings.

7. How do I make a deposit? 

Being able to deposit money easily can help you increase your account balance faster. One of the easiest ways to deposit money into a Fifth Third Momentum® Savings Account is to transfer it from your Fifth Third Momentum® Checking Account. The Fifth Third Mobile App also lets you deposit money remotely by using your phone’s camera to scan a check. You can also add money to your account via check, cash or an electronic or wire transfer. If you choose to have your paycheck deposited via direct deposit, you can have part of the payment go to checking and part of the payment go to savings.

8. How do I withdraw money? 

While it’s important to give your money the opportunity to grow, you want to be able to access it when you need it. You can withdraw money from a Fifth Third Momentum® Savings Account via ATM, by visiting a branch or by transferring money to your Fifth Third Momentum® Checking Account and writing a check from there. You can also make an ACH transfer to another account outside of the bank.

9. What's the age to open a savings account?

While most banks require you to be 18 to open a traditional savings account on your own, many financial institutions have special accounts for children or teenagers. A savings account can serve as a helpful tool to teach children financial responsibility. Fifth Third offers no-fee Kids Savings Accounts for those under 18. A parent or guardian will need to be a joint owner of the account.

10. Is the savings account insured by the FDIC?

A savings account is one of the safest places you can store your money. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 in deposits to savings accounts in addition to checking, money market and CD accounts.

11. How do I open a savings account? 

You can easily apply by filling out an online application. You can also visit a Fifth Third branch or call the bank.

If you apply online, you’ll need your Social Security number, driver’s license or government-issued identification, and a mobile phone with a camera to scan in your ID. If you want to transfer money into a savings account from another account, you will need that other account number. You can add funds from your free Fifth Third Momentum^® Checking Account.

Three things to do: 

• Explore strategies to grow your savings account.
• Compare savings accounts offered by Fifth Third.
• Calculate how much you’ll need to achieve various financial goals.