I’m a Bank Teller: 7 Best Bank Accounts To Deposit Your Social Security Check
When it comes to your Social Security check, deciding where it goes is just as important as getting it in the first place. But with the wild amount of bank accounts out there, how do you know which one’s right for you?
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GOBankingRates spoke with Rachael P., a bank teller with years of experience, to find out some insider info on the best accounts for your hard-earned benefits. Here’s seven bank accounts she said are the best places to deposit your Social Security check.
No-Fee Checking Accounts
“First things first, you don’t want your benefits eaten up by fees,” said Rachael. “Look for accounts that offer no monthly maintenance fees, especially for seniors – those exist and they’re great.”
Nowadays, many banks offer fee-free checking accounts for customers who set up direct deposit for their Social Security checks. These accounts often come with other perks like free checks and no minimum balance requirements. Ask your bank which one is right for you. And if your bank doesn’t have one, shop around.
High-Yield Savings Accounts
While you’ll likely use most of your Social Security for everyday expenses, it’s smart to keep some in savings.
“High-yield savings accounts can help your money grow a bit faster,” Rachael continued. “Even a slightly higher interest rate can make a difference over time.”
Online banks often offer the best rates for these accounts, so absolutely look beyond your local brick-and-mortar.
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Senior-Specific Accounts
Some banks offer accounts tailored specifically for retirees and Social Security recipients. “These accounts often come with perks like free money orders and notary services so they’re worth looking into,” explained Rachael.
Pro-tip: Make sure to read the fine print. Some accounts may have minimum balance requirements or other conditions you have to fulfill in order to get the best benefits.
Second-Chance Checking Accounts
If you’ve had banking troubles in the past, they shouldn’t exclude you from banking in the present.
“Second-chance checking accounts can be a lifesaver for people who’ve had issues with over-drafting,” Rachael said.
These accounts often have lower fees and less strict requirements, making them a good option for getting back on track with your banking.
Again, it’s a good idea to shop around and make sure you’re getting the right account for you.
Joint Accounts
For couples receiving Social Security, a joint account can make things significantly easier.
“A lot of people have joint accounts to pay for household expenses,” Rachael explained. “Just make sure you both agree on how the money will be used – I’ve had this issue with my husband in the past!”
Look for joint accounts that offer features like online bill pay and mobile check deposit to make managing your funds even easier.
Money Market Accounts
If you’re looking for a bit more flexibility, consider a money market account.
“These accounts often offer higher interest rates than regular savings accounts, and you can usually write checks from them too,” Rachael added.
Just keep in mind that money market accounts might have higher minimum balance requirements, so make sure it fits your financial situation.
Certificate of Deposit (CD) Accounts
For any portion of your Social Security that you won’t need right away, a CD could be a good option.
According to Rachael, “CDs typically offer higher interest rates than savings accounts, especially if you’re willing to lock your money away for a while.”
Consider setting up a CD ladder with different maturity dates to balance higher rates with accessibility.
Tips for Choosing the Right Account
Now that we’ve covered some of the best options, here are a few tips from Rachael to help you make the right choice:
Compare fees: “Even small fees can add up over time, so make sure you know exactly what’s happening with your account,” recommended Rachael.
Check the fine print: Make sure you understand all the terms and conditions, including any requirements for fee waivers or earning interest. Those can be tricky so ask the bank teller or a financially savvy friend for assistance if you want.
Consider accessibility: Rachael suggested, “Think about how you prefer to bank – in person, online or through a mobile app – and choose an account that’s right for you.”
Look for FDIC insurance: Seems basic, but some people miss it. Just make sure any bank you’re considering is FDIC insured to protect your money.
Ask about perks: Some accounts offer extras like free safe deposit boxes or discounts on other bank services.
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This article originally appeared on GOBankingRates.com: I’m a Bank Teller: 7 Best Bank Accounts To Deposit Your Social Security Check