Money and money

A bank is one of the safest places to stash your cash because bank accounts are insured against loss by the federal government for up to $100,000 per depositor.

Banks pay lower rates on interest-bearing accounts than other institutions, such as brokerages or mutual funds that offer check-writing privileges. Bank fees can be high with bank account costs adding up to $200 a year or more unless a minimum required balance on deposit is kept.

Even at a low rate of inflation, the annual creep in the cost of goods and services usually outpaces what banks pay in interest-bearing accounts.

Banks frequently use different methods to calculate interest. To compare how much money is earned from various accounts, customers should ask for each account’s “annual percentage yield.” Banks typically quote both interest rates and APYs, but only APYs are calculated the same way at every bank.