Read the Fine Print on Savings Accounts to Avoid Monthy Account Fees

Thinking about opening a new savings account or did you forget about a savings account you had? Besides searching for the best savings rates when opening an account, you should also read the fine print which can contain fees, especially for inactive accounts. These days you won't get rich earning interest on a savings account but you also don't want your savings account to cost you money either.

Most banks and credit unions have a minimum monthly balance to earn a particular rate of interest. Once the account falls below a certain dollar amount, the interest rate can be lowered or eliminated entirely. The highest current savings rates available are around 1.00 which are actually below the current rate of inflation of 1.7 percent.

Since your savings isn't keeping up with inflation as it is, once you tack on monthly account fees you may actually start to lose money on your account. While the monthly fees are small, usually $5 or $10 a month, they can quickly add up. Most savers don't realize they are paying a fee because they receive statements they don't even review.