How to Save on Savings Accounts

If you maintain a savings account, keeping your costs low is key. Why? With the yields on these accounts paying an average of only a little more than 2 percent, a monthly fee could wipe out all your interest earnings, and then some.

Look at the minimum balance. Before opening an account, find out if you will pay a monthly fee if your balance falls below a certain amount. A typical minimum is $100. You may want to avoid an account with this built-in penalty if you don't intend to park much money in it. Also be aware that some financial institutions will penalize you for making too many withdrawals during a month.

Double up on accounts. You may be able to cut costs by opening a savings account with the bank that handles your checking account, personal loans or certificates of deposit. Ask about multiple-account discounts.

With an ATM card, you're no longer a slave to regular banking hours. Remember bankers' hours? But many financial institutions appear to be taking advantage of the addiction to convenience. You can pay a high price for pulling money out of your account with an ATM card.

Be loyal to your bank's ATMs. If you regularly use an ATM card, make sure your financial institution offers free unlimited ATM transactions at its own machines before opening an account. If you want to cut down on fees, don't extract cash from another financial institution's ATM: The fee for this can cost as much as $2, which is automatically deducted from your account. Also, your own bank may tack on another surcharge for using an outsider's ATM. So one $20 withdrawal could cost an extra $4 in fees. If you must use an outside ATM machine, find one at a financial institution, such as a community bank or credit union, that won't charge you for withdrawing some quick cash.

Reduce your ATM use. You can save money by withdrawing money less often with your ATM card. Instead of taking $20 out of your account several times a week, consider withdrawing $100 once a week instead.

Get a debit card instead. A growing number of financial institutions are replacing their standard ATM cards with ATM debit cards that allow money to be immediately withdrawn from your account for purchases. You may be able to avoid ATM transaction fees by withdrawing a little extra cash when you make a debit purchase. Make sure you won't pay a surcharge each time you use the debit card.