If you have a savings account with your local bank, there is a good chance that you must maintain a minimum balance in order for the account to remain active. It’s usually pretty cheap – some banks and credit unions will only require a minimum balance of $5 – but sometimes it can be more than that. And regardless of how paltry $5 sounds, nonetheless if you remove that $5 from your savings account the account could be closed. So, it makes sense for a lot of people to consider opening a no minimum savings account. A no minimum savings account is just what it sounds like – a savings account that lets you keep your balance at zero, if that’s what you want, without worrying that the account will be closed.
Many banks, credit unions and other financial institutions offer no minimum savings accounts. They offer them because the economy is in free-fall, and one of the biggest aspect of this meltdown is a liquidity crisis. A liquidity crisis means there is no money to lend to people and businesses who need it, and lending money is how banks make money. So, in order to tempt you to give them your money, in the form of a savings account, banks, credit unions and other financial institutions in the business of lending money will offer savings accounts with as many “bells and whistles” as possible. Of course, the “loudest” bell or whistle is going to be a competitive interest rate, but along with that you can easily get a no minimum savings account. It’s just one less thing you have to worry about, and in today’s economy, that’s a definite plus.
To learn more about no minimum savings accounts, be sure to consult with a financial advisor or a bank representative whom you trust.