Proper savings techniques are one of the major components of our seminars and wealth strategy sessions at Factum Financial. We have written in the past about the interest you really earn with your money sitting in savings versus the amount you make when your money is working for you. However, even if there are better places where you can use a majority of your wealth, you still need to keep your money safe and you need a place to build an emergency fund. How do you choose where to put your money to allow it to grow safely? Do you choose a Chase Bank savings account or do you opt for one of the many smaller savings accounts offered at local banks? It seems like there are a million banks out there, so it can be overwhelming. Factum Financial has put together a list of the good things —and the bad things— about the personal savings accounts offered at 4 of the biggest banks in the United States.
1. Chase Bank
Chase Bank is everywhere and their savings accounts are attractive options for people that love to do their banking in person. Chase Bank has about 5,000 branches across the country as well as 16,000 free Chase ATMs, so convenience is key. In addition, a Chase Bank savings account does not have a required deposit amount to open. Many people choose a Chase Bank savings account because of their incredible online banking and app, which is the highest ranking online banking app on this list. However, like many of their competitors, Chase Bank only has an APY of about 0.01% interest on the money in their savings accounts, so you are going to need a way to make more cash on your wealth.
2. BBVA Compass
Unlike the other banking behemoths on this list, BBVA Compass Bank has only about 600 branches across the United States, but where they are prevalent, they are a very trusted source for checking and savings accounts. People like them is because of their interest rates. Unlike a Chase Bank savings account, BBVA Compass has an APY of 0.05%, which is huge in comparison to the other savings accounts on this list.
3. Bank of America
Bank of America is one of the biggest banks on this list and the second biggest bank in the United States, which makes some people shudder, but there are some advantageous things about doing business with a large bank. For starters, owners of Bank of America savings accounts are more likely to find a place to do their banking business near them, as there are about 4,400 locations across 40 states. Furthermore, unlike some of their competitors like Wells Fargo, Bank of America savings accounts have an APY of 0.03%, as opposed to many competitors meager offering of 0.01%. However, they do have stricter requirements to open a Bank of America savings account and the minimum required deposit to open an account is $100 dollars. Many customers also dislike that a Bank of America savings account only has support staff available by phone from 8 am to 11 pm on weekdays and 8 am to 8 pm on weekends, rather than the common 24/7 support that other banks offer. The choice to use Bank of America would be purely based on what’s convenient to your location.
While Wells Fargo is lower on the list of the largest banks in America, no one can doubt that Wells Fargo is one of the most marketed and visible banks available for consumer use. Their fingerprints are on everything. Wells Fargo savings accounts might not boast the same APY as Bank of America, but their online banking features consistently receive 4.8 stars out of 5 and their support staff is available 24/7 by phone, chat and social media contact. A Wells Fargo savings account would serve you well if you want to establish a smaller account, as the minimum starting deposit is only $25 dollars.
Using Savings Effectively
With so many banks in existence, there is no shortage of organizations that want you to put your money in their savings accounts so they can hopefully lure you into using their other products. However, just because Chase Bank promises you that their returns on a certified deposit that earns more than their competitors and you would love it because you have a Chase Bank savings account, doesn’t mean that a bank isn’t working somewhat against your interests. You can take control of your own interests and do what a bank does, while still reaping the benefits of their savings products. Here is a quick video about this topic from the Factum Financial team:
No matter which of the savings accounts you use from this list above or whatever bank you want to use, you should have control of your cash flow. Using the Infinite Banking Concept is an extremely powerful financial approach that will leave you feeling like you’re in charge. Want to know more about IBC and your life?
Contact the wealth strategy team at Factum Financial to get a free wealth strategy session now. Factum Financial is ready to help you take the next step toward financial freedom.