Starting a Savings Account
Had a windfall come from nowhere? Find out that your budget is a little looser this month? Realize that you have some additional cash to spare? In all the circumstances, many people might be tempted to blow the money and spend it on having fun. But this is not nearly the wisest decision you could make, and in fact, it’s very imprudent. There are always times when cash is less abundant than you’d like, and it’s at those times when having a savings account is so important.
A savings account is how you can ensure that you stay financially safe when those crises come along. Open a savings account and you’ll find that you feel much more secure and safe about your financial situation. It’s easy to open one, and once you’ve got one, all you have to do is start filling it.
Opening an Account
Opening an account for savings is as easy as opening a checking account, and much easier if you’re already working with a certain bank. If your local bank offers savings account options, then they should be able to help you to easily open a new account for savings.
If you want better rates, then shop around a bit. Don’t just go with what your local bank offers, as you can probably find better deals. Check out other local banks and even online banks to see what you can get from them. Often the rates will be almost the same, but little higher rates are always better.
When opening your account, think about how much you want to deposit and how long-term you want your savings to be. If you’re saving big, for something like a college degree, a house, or an automobile, then look for an account that is designed more for that type of savings. If you’re saving long term, like for retirement, then get an account that suits that. Your banker can help you to find the right account for your needs if you let them know your goals.
The best way to make your savings account grow is to continually contribute to it. The interest rates will most likely be minimal unless you have a pretty large sum of money deposited, so keep building it up. Set aside a good percentage of your monthly earnings to go into the account, and before you know it you’ll have a very good financial safety net waiting for you in case of an emergency.
Many savings accounts charge fees for having too little in the account, and this should help encourage you to continually keep the amount in there at a general high. You should try as much as possible to not touch the money you have in there, as it should be left to grow and be kept for when it’s really needed. If you want to use your money, then put it in a checking account instead.