Looking to Protect Retirement Savings? Choose the Right Checking Account

Checking Accounts That Offer Three Crucial Features to Protect Retirement Savings

In America's youth-obsessed culture, the title "senior" has something of a mixed connotation. Many people over age 55 are in no way ready to be called that name.

However, just because you are not a big fan of the title doesn't mean that you shouldn't consider the financial benefits it can confer. A senior checking account can be a part of a strategy to protect your retirement savings. As a matter of fact, forget about the title "senior checking account." Just look for these three attributes in your checking account, and you can rest assured you're choosing a retirement savings-friendly account.

1. High Interest Rate Checking

Money-rates.com readers are at the forefront of the Best Rates Revolution. By searching for the best interest rates on CDs, money market accounts, and savings accounts, financially savvy seniors aim to protect retirement savings by growing these savings slowly but surely, via compound interest.

The lowly utilitarian checking account often gets left out of this high-interest equation. It's sort of an afterthought. It shouldn't be. Why not also get the best rates on your checking account? Every little bit counts when you're over 55 and nearing retirement. Seach on money-rates.com for the best checking account rates.

2. Low-Cost Checking

High-interest checking is a solid tool for protecting retirement savings. But low-cost checking is an absolute must. Sometimes, the easiest way to save money is to not spend it on bank fees.

If your goal is to protect retirement savings, you need to evaluate your checking account for:

• Monthly maintenance fees
• Overdraft fees
• Transaction fees

Find a free checking account that respects your need to protect retirement savings. Paying too many bank fees when you're over 55 is not a smart idea--fees can wipe out your interest gains and eat into your principal.

The asset management company BlackRock recently identified an incipient $10 trillion shift in wealth management strategy, from accumulation to "decumulation." In short, as more people become seniors, they'll be worrying less about building retirement savings and more about protecting these savings from being eroded.

Decumulate your savings more slowly by avoiding costly checking account fees.

3. Money Market Account, Savings Account Linkage

Another factor to consider when choosing a checking account is how well your bank handles money movement between your checking account and your other accounts.

For example, if you have a high interest savings account at another bank, does your checking account bank facilitate easy and convenient transfers? If you have funds in a money market account and suddenly need to move $10,000 from your money market account to your checking account, how long would it take to get that done?

Protecting retirement savings is much more doable when you have a full picture of all your finances and, perhaps just as important, how your different accounts are connected. When you're young and broke, this full picture may be less critical. At age 55 and beyond, connecting the dots is essential.

Source:

Joe Rauch • Wealth management due for $10 trillion shift: BlackRock exec • Oct 06, 2009 • Reuters: http://www.reuters.com/article/GlobalWealthManagement09/idUSTRE5956HO20091006