Every time a new higher interest offering is posted I quickly realize the hassles involved locating basic account information. While some banks are pretty good about disclosing account particulars other institutions are secretive and vague about the account particulars making it just about impossible to know the facts.
Navigating from one financial institution to another seeking those great rates is like walking through a jungle. You don't really know what's going to jump out at you unless you are prepared for what's to come beforehand.
Case and point, if you open a new account blindly it can cost you money in interest earnings when they drop the teaser rate. No problem you say, I will just close the account, now you just became a victim to the account early termination fee trap. What about if your balance drops below a certain amount? They then hit you with low minimum balance fee and you only receive a meager interest rate instead of the great teaser rate that drew you there in the first place.
If you park your money as most of us do to collect the high interest rate some institutions will then hit you with an account inactivity fee that quickly drains your earnings sometimes even cuts into your principal. They are also sneaky about contacting you about these issues as they somehow mysteriously loose your contact information as your account is drained of your hard earned funds.
Here is my list of the obvious questions that must be known prior to opening the new account. While some are posted on the account facts by DA, I wish this site would expand the answers to these questions as a way to help us readers avoid all the hearsay and misinformation that I see posted on the blog comments. At the least for DA to flag some offers as cautious because of the sneaky underhanded tactics or lack of obvious disclosures by these institutions.
I invite everyone to please add any important questions that must known prior to opening a new account in order to avoid those sneaky gotcha fees and traps.
Savings/MM Account Pre-Opening Questionnaire
01. Minimum deposit to open account?
02. Minimum balance requirement to keep account open?
03. What is the minimum & maximum balance range to earn the highest interest rate?
04. How is interest earnings compounded & paid?
05. Once account is open what is the minimum balance requirement to avoid fees?
06. What is the inactivity period before the account is declared dormant?
07. How long must account remain open in order to avoid account early closing fees?
08. If the account is closed prior to the close of the statement cycle is interest paid or forfeited?
09. Are ACH pulls & push permitted from an external source?
10. Are there any fees for ACH pulls & push from an external source?
11. Are there any cash value limits for ACH push & pulls from an external source?
12. Can ACH transfer from an external source be used to fully fund the account?
13. How many accounts can be linked to new account?
14. How long will the current interest rate offering/special/promotion will be available?
15. Does the current rate apply to new money only or also to existing accounts?
16. Does account allow beneficiaries, if so how many?
17. Are there any restrictions on the account beyond the 6 monthly withdrawals?
