We have all used bank accounts and are to a very large extent self confessed savers. However, the questions as to whether we know certain trivial facts about banking and savings still remains unanswered. During this time of recession it is important to create a good savings plan. We have put together a list of certain important banking tips that we feel might interest consumers and help them understand their everyday bank and savings a little better.

Banking & Savings: Tips To Keep In Mind

1. Safety: One of the primary reasons why consumers use bank accounts is owing to fact that money in a bank account is safe. Let’s face it, no matter what, one cannot deny the security offered by a bank is far greater than any floor-secured safe, hidden closet or underground treasure trove. One might remember the federal government’s pledge to insure bank accounts for up to $250,000 per depositor during the credit crunch. However, come January 1st 2010 the normal insurance of $100,000 per depositor is said to return.
2. Convenience: Bank and savings fees are justified by the convenience factor. Apart from allowing you to safely store your money, banks allow you with a lot of other privileges like writing cheques or using ATMs etc. Bank saving accounts tend to pay lower rates on accounts which bear interest, in comparison to similar accounts which can be held with broking houses or mutual fund companies.
3. Beware Of Inflation: Unknown to consumers, inflation slowly erodes any interest that the banks pay you for your saving accounts. What you may not know about your bank and savings is that with the rising prices of goods and services some times it is possible for your money to lose out in a bank account.
4. Interest Rate Inequality: This is a commonly known fact about bank and savings that different bank saving accounts earn different interest rates. Interest rates are calculated differently at different banks. If you really want to compare your bank accounts, the best banking tip is that it might make sense to compare the Annual Percentage Yield. The APYs are always calculated using the same formula everywhere.
5. Getting Better Rates: A lot of consumers often use certificates of deposit (CDs) to earn better interest rates. However, it may be of interest to know that CDs require consumers to lock in their money for a period of 3 months up to five years. Another banking tip is the option of investing your money in the money market during a bull market as the returns which the money market would generate would far surpass the interest rates on saving accounts offered by your banks.
6. ATM Charges: This issue has become an increasingly popular one. Using an ATM of another financial institution can prove to be costly thus affecting your saving accounts. Not only do you get charged $1.46 by your bank for using another ATM, the other bank chares you a further $1.97 to use its facility.
7. Banking Without Banks: While this banking tip may sound absurd it is also true. You do not have to store your cash/money in a bank account. There are a lot of companies out there which are offering similar services to banks and with pretty much the same flexibility as a saving account. Examples of these institutions are credit unions, building societies, mutual fund companies, broking houses etc.

The above mentioned facts are a guide to help consumers understand their personal bank and saving options  better. It is always advisable for consumers to shop around prior to settling on a particular saving account or bank. It is also recommended that consumers should consider their own banking and budgeting needs as well prior to making up their minds.