Something to consider and research before signing up for a specific savings account is its interest rate. Basically what returns are you going to get from this bank or provider for allowing them to hold your money? It’s one of the many ways they compete with each other for your business. Some use tactics such as a savings account bonus or flexible withdrawal options; others focus on interest rates to lure you in.

The variation of interest rates is wide and will depend on a few things. Most commercial banks have set interest rates that they do not have the ability to move on because of the nature and size of their business, other smaller providers can often be more flexible in tailoring a rate to suit your needs at the same time securing your custom. The financial situation of their industry can most definitely have an impact on the rates they are offering. The amount of money you are willing to deposit can sometimes have an affect also. Once you look at options such as a term deposit rather than a savings account your interest rate options will vary even more.

Sometimes a rate will be fixed for a certain period of time, say the first year, then reduce to a standard rate. During that first year you may see returns that considerably contribute to your savings, although the drop the next year may see next to nothing returned to you. With these types of offers seriously consider your saving goals and how long it will take you to achieve them before committing.

Often a low interest rate is compensated for in other ways such as a savings account bonus. A one off sign-on payment you would receive for opening the account. Depending on your saving goals a bonus like this can be more effective in helping you reach those goals than a mediocre interest rate.

If you have a good relationship with your existing bank they will sometimes be able to offer you a competitive interest rate on your savings account. A lot of banks and providers reward long term custom with better rates than a walk in customer may have access to.

Consider how often interest payments will be made to you. It could be monthly, 6 monthly or annually. Are the estimated interest payments likely to be more than the fees on the account? This is something important to consider.

Before sitting down with one particular bank or provider make sure you’ve done your homework and have a basic understanding of what the competition is also offering – including their possible savings account bonus. They will know exactly what is out there on the market but will assume you probably don’t.

Before you sign up for a savings account you should have an idea of what sort of rules and conditions are likely to be in place. Some of the rules will prevent you from accessing your money; some of the conditions are beneficial – like a savings account bonus for example. Whether you consider the conditions of a savings account to be good or bad will be determined by your individual situation and savings goals. Exploring and understanding them is essential before opening a savings account with any bank or provider.

Most banks and providers will have full terms and conditions of their accounts available on their websites or in brochure form from their local branch. Before you schedule an appointment or begin the sign up process online make sure you have all your questions answered – if not by the terms and conditions then by a representative of the bank or provider.

No ATM / check access is a common rule of savings accounts. This is too tempting and easy for people to access money and will only hinder their savings potential. If you do need to withdraw funds its likely you’ll have to visit a local branch.

Withdrawals can be hard to make on some savings accounts. A withdrawal restriction could be something as little as visiting a local branch and signing a funds release document, or could be as hard as applying in writing to request the funds with a minimum of 7-14days notice before the funds could be available to you. Almost all withdrawals from savings accounts will have a fee attached for doing so.

Paying bills is much harder to do than from your regular everyday accounts. Some savings accounts will allow you set to scheduled bill payments; others will completely forbid the use of your account for such things.

Some banks and providers will give you a savings account bonus on signing up with them. This deal varies among providers and the conditions associated with it do also. Its likely you will not earn interest on this bonus, nor will you be able to withdraw it until a certain savings goal has been achieved or a certain period of time has lapsed – or both.

A ‘don’t touch’ policy is common with savings accounts. This is usually for the customers benefit and removes the temptation to spend when you see money accumulating in front of you. This means that you simply cannot access the funds until a certain figure is reached, that figure could be determined by the bank or provider or sometimes set by the customer.

The list of terms and conditions associated with a savings account and a savings account bonus are quite extensive. The ones mentioned here are simply ones that will have varying affects on different people. Consider your situation carefully before deciding and be honest with yourself – do you have the willpower alone? Or are you going to reach those goals quicker with the help you’ll get from a possibly restrictive savings account?