Final answer:
When comparing savings accounts, individuals typically consider interest rates, liquidity, and safety guaranteed by the FDIC. Fees, bank reputation, and additional features or benefits are also important factors in making a choice.
Step-by-step explanation:
When comparing savings accounts, individuals might consider a variety of factors to ensure their financial needs and preferences are met. One of the main points of comparison is the interest rate offered, as this determines the return on the saved money. However, it is essential to balance the interest rate with the liquidity of the account, which refers to how easily and quickly money can be accessed. Another significant factor to consider is safety. Bank accounts typically offer more security than other forms of stashing money, such as keeping cash at home. This safety is further reinforced by the Federal Deposit Insurance Corporation (FDIC), which insures each depositor's savings up to $250,000, offering peace of mind in the unlikely event of a bank's failure. Additional considerations might include fees associated with the account, the bank's reputation and customer service, and any extra features or benefits, such as free checking accounts for students, which banks might offer to attract certain demographics with the hope of establishing long-term customer loyalty.