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Banks Are Vying For Your Business |
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Written by Trisha Wagner
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After many years of spending, sometimes to the point of excess, it appears consumers have finally realized the necessity of having savings in place to fall back on when the economy takes a turn for the worse. In January, for the first time in years, the rate of money being saved by American people actually increased. This is probably a result of consumers looking for ways to save money and reduce their unnecessary spending. As a result, many banks which are not necessarily interested in your business if you need money, are indeed interested in helping you find a safe place to put your savings. Here are a few of the benefits banks are offering to consumers in an attempt to gain your business.
- Sign-on bonuses - Many banks are currently offering sign-on bonuses from $25-$150 when you open a checking or savings account at their location.
- Gift cards.- Open a new account at certain banks and you will be rewarded with a gas gift card.
- Online accounts - The days of having to go to a brick and mortar building are over. Today you can choose from a variety of online banks that generally offer better rates and fewer restrictions than you local branch.
- Reward accounts - Rewards programs have been hugely successful for credit cards in the past and banks are looking to lock in your business by offering certain reward accounts. Similar to credit card rewards programs, serious savers will reap the most rewards from these accounts. The basic concept is that if you are willing and able to meet their requirements such as limited debit purchase per month, direct deposit, automatic payments and opting out of receiving paper statement, you may qualify for a rate as high as 6%. Carefully review the requirements before signing on because those who are unable to meet the requirements will find their rate will quickly drop below the rates of the competition.
It stands to reason that as long as consumers continue to move toward saving more money, banks will continue to compete for your business. When looking for a bank to place your savings, take the time to shop around and compare rates and restrictions to find the best deal. While there are many perks being offered by banks to get you in the “door” make sure you do not sign-on for an account solely for the perks. It makes no sense to get a $25 bonus for opening an account if you could find a better rate elsewhere. Take your time and read the fine print to ensure all your hard work to save money is rewarded by seeing it grow.
Trisha Wagner is a freelance writer for DepositAccounts.com, where you can compare rates of checking accounts from dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.
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