There are a variety of reasons to begin or continue saving money. Different people save for different reasons, but in general, having a savings will benefit you in the future. Whether you’re avoiding hardship or going after the things you want. How and where you save your money matters. Read the article below and consider different options available for saving money, and why you might want to option a bank account.
If you decide that opening a bank account makes sense, you need to choose the right one. In order to choose the right bank account for your needs, you have to know and understand the following details:
- What is the Monthly Fee?
- This is a base fee, usually paid once a month by you to the bank, to keep your account open. If there is a monthly fee charge on your current bank account, you might want to look for another account that has no monthly fees.
- Are thereTransactionfees?
- A transaction fee is charged when you make a transaction (move money in or out of your account).
- What does the bank charge you for ATM, teller or cheque transactions? In some accounts, there may be a certain number of free transactions per month, after which you have to pay a fee for each one. If the fee for an ATM transaction to withdraw money is $1 and a person withdraws money twice a week, the banking fees for that person will be $104 a year. Over a five-year period, those fees invested at 5 percent would grow to more than $570. Transaction fees add up!
- Can I use Online Banking?
- Are there any fees for paying your bills and banking online?
- Will there be Reporting Fees?
- If you ask for monthly paper statements and bankbook updates, you may have to pay a fee for this service. Find out what this fee is and then you might consider switching to paperless banking.
- Will there be any Not Sufficient Funds (NSF) Charges?
- This is sometimes called insufficient funds. If your bank balance in an account dips below zero dollars, this is called an overdraft and the bank will charge you an overdraft fee. This can happen when your account is at zero, but you still withdraw money from it. Even if the overdraft amount is very small–as little as $1.00–you will be required to pay this fee. Find out how much you will pay for each overdraft charge.
https://youtube.com/watch?v=1UBp26w6Nb4%3Ffeature%3Dyoutu.be9 minute video
What interest rate will I earn on my Savings?
- What interest rate (if any) does the bank pay on your deposited money?
- When you deposit money in a savings account, you are ‘lending’ your money to a bank. You can think of it as ‘renting’ out your money: for every dollar that you rent out, the bank agrees to pay you a portion of that dollar in ‘rent’ every year. That rent is known as interest and the portion of every dollar that they agree to pay you is called the interest rate.
Comparing Savings Accounts
OUR TASK: Select two banks or credit unions and compare the services they offer to students. Which one is a better choice for you?
Use the Savings Account Comparison Chart (PDF or WORD) to gather information and make a justified decision. If you do not have access to a printer, you can make an outline and fill it in on blank paper to complete the activity. Use the Government of Canada’s Account Comparison Tool to decide what is the best savings account for you. This tool gives you a much larger selection of banks and credit unions.
Below are some examples of student bank accounts looked up using the comparison tool:
-Scotiabank-student-bankingDownload
-TD-student-chequingDownloadYour Name(required)And the Winner is… Which is a better option for you and why do you think this? (required)Submit
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