Your Guide to Choosing Banks and Accounts for Building Wealth
NerdWallet's Smart Money Podcast
Introduction
This chapter introduces the topic of choosing banks and bank accounts for building wealth. The hosts discuss the basics of banking, including the different types of banks and explain how banks work, the services they offer, and the concept of interest.
Listen to our webinar on how banking right can help you grow your money, with tips for choosing accounts and changing banks.
What are the benefits of online banks or credit unions over traditional banks? What should you consider before changing banks? How can you passively grow your wealth by putting your money into savings accounts and CDs? NerdWallet’s Kim Palmer moderates a discussion on banking-specific topics that could help you get more from your money.
01:34 Choosing a Banking Institution: Banking Nerd Spencer Tierney explores the essentials of banking, from choosing the right bank accounts to understanding the benefits of different banking institutions like online banks, credit unions and national banks. He discusses the importance of federal deposit insurance for account safety and how banks use your deposits to fund loans and investments, potentially paying you interest in return. He also touches on the convenience and security offered by banks through services like direct deposits, bill payments, and encrypted online platforms, and covers the pros and cons of online banks.
10:47 Different Types of Bank Accounts: Banking Nerd Chanelle Bassette explains basic types of bank accounts, including checking accounts, savings accounts and certificates of deposit (CDs), each serving different financial purposes. She emphasizes the importance of high interest rates and savings features like automatic transfers and roundup programs. Then, she discusses how CDs can help you reach medium to long-term savings goals.
22:34 Leveraging Savings Accounts for Financial Growth: Banking Nerd Margarette Burnette discusses the benefits and strategies for optimizing savings through high-yield savings accounts. She discusses the security provided by federally insured accounts and the impact of rising federal interest rates that can benefit savers. She also explains the power of compound interest by comparing the growth offered by traditional low-interest savings accounts with the gains possible from high-yield accounts, and touches on the difference between simple interest and APY.
In their conversation, the Nerds discuss: personal finance decisions, smart banking, financial growth, bank selection, savings accounts, choosing the right bank, high-yield savings accounts, avoiding fees, checking accounts, certificates of deposit, CDs, direct deposits, federal deposit insurance, FDIC, online banking, credit unions, national banks, financial empowerment, banking strategies, automatic savings features, account safety, interest rates, APY, simple interest, banking landscapes, financial aspirations, banking tools, encrypted online platforms, consumer banking, overdraft fees, shopping for banks, second chance checking accounts, fresh start checking accounts, bank accounts, savings goals, compound interest, federal interest rates, federally insured accounts, money management, financial services, financial institutions, and banking fees.
To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.
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