TCF Bank is the wholly owned banking subsidiary of TCF Financial Corporation, a bank holding company headquartered in Wayzata, Minnesota. As of September 30, 2013, TCF Bank had over 425 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota.
Why open a savings account? is the key to setting yourself up for a financially stability. Most people at least need an emergency savings account for surprise expenses, while it’s also a good idea to save for future goals like college or retirement. In any case, no matter what you’re saving for, it’s important to keep some of that money in a and help it grow quickly, yet safely.
You can’t keep all your cash in Mr. Piggy forever. But hoping for any real gains in interest with a chequing or day-to-day operating account from the major banks is almost laughable. Half a point? Whoopee!
If you want something a little more substantial for storing your cash on hand, we suggest looking for a so-called high-interest savings account, either from your primary bank or an alternative. When choosing, make sure to watch for unappealing details such as a minimum balance, fees for use, limitations on interest payment and maximum number of transactions allowed.
It makes sense to just leave a minimal balance in a chequing account with most of your money sitting in a savings account with a better interest rate to earn whatever you can. This means that you may have to transfer money between a savings account and a chequing account to ensure that there is enough to cover cheques and payments but not so much that the money is sitting there and not earning any interest at all. Online banking is helpful for this, as you can monitor your balance and do transfers whenever necessary.
Bank account fees are often directly related to the number of transactions, so you should review your banking plan to ensure that it will cover the number of transactions you think you will need every month.
Online banks such as ING and PC (which is actually operated by CIBC) definitely give the best interest rate on savings, have much lower bank fees and are the preferred savings account for most people. Remember that you do have to pay income tax on interest earned in a savings account. Your bank should give you a form come tax time.
TFSAs (tax-free savings accounts) are useful as a way of not paying tax on investment and interest income. But there are very strict rules limiting withdrawals and deposits that if not followed can result in a penalty from the CRA. Also, you can put all kinds of investments in a TFSA, not just a basic savings accounts, so it often makes more sense to use it for higher-earning investments rather than straight savings.
Bottom line? Whether you’re saving for something specific, maintaining an emergency fund or keeping a buffer balance in your account, make sure that money’s working for you as hard as it can. A little research and effort now can bring in decent returns over the long term.