What to Look For in a Savings Account

 

July 20, 2012

By Katie Bryan, America Saves Communication Manager

Saving money can seem like an impossible task to many new savers.  About 25% of Americans have no savings at all and simply do not know where to start, or what to save for. The simplest and most effective way to get started is by making a budget, starting small automatic deposits into a savings account, and deciding what you need to start saving for. Opening a savings account is a crucial way to start saving to pay down debt or simply provide money for emergencies. When looking to open a saving account here are 6 things to look for:

1)      FDIC/NCUA Insured: Look for a savings account that is safe because it is FDIC or NCUA insured.

2)      NO Fees: Shop around for a savings account with no regular fees.

3)      Low Minimum Balance: Usually $25-100 but make certain monthly fees are not charged for small balances.

4)      Convenience: Look for a bank or credit union that is convenient for you.

5)      Interest: Interest is a small amount of extra money the bank or credit union gives you just for keeping your money there, so take advantage and look for an account that earns interest. Interest rates on savings accounts are lower than they were a few years ago but still shop around for the best rate or ask your financial institution if they have any specials.

Click here to learn about other financial products to help you save.

More Articles about banking:

Five Reasons You Should Consider Direct Deposit

Pros of Online Banking

Pledge to Save

I pledge to save money, reduce debt, and build wealth over time. I will encourage my family and friends to do the same

Pledge to Save

Blogger Resources

We are always looking for guest bloggers to share their savings tips and advice with our readers. 

Review Submission Guidelines

Tip of the Day

  • Written by Annie Cromwell | January 11, 2014

    Save your loose change. Putting aside fifty cents a day over the course of a year will allow you to save nearly 40% of a $500 emergency fund. http://ow.ly/sj972 

Saver Stories View all »

Learning to Save

Written by Katie Bryan | October 28, 2013

Kisha Barns’s financial situation was undisciplined, unrestricted, and impulsive before she came into contact with her local America Saves campaign, Charlotte Saves.

Read more...

Getting Out of Debt

Written by Katie Bryan | October 28, 2013

In 2004, Tonya Shelton was facing financial ruin. Barely making more than minimum wage and having lost her home to an unexpected family crisis, Shelton and her family were forced to live in a rundown hotel.

Read more...

Jump-Starting a Financial Makeover

Written by Katie Bryan | October 28, 2013

Nichelle Johnson, a single mom with two teenage children, knows what it’s like to stretch a dollar. When she moved back to Virginia Beach in 2008, she provided for her family with just a part-time library position.

Read more...

Receive Updates

Sign up for Texts

Written by Tammy Greynolds | July 15, 2014

Read more...

Sign up for Emails

Written by Super User | September 16, 2013

Get Emails

Take the Pledge

Written by Super User | September 16, 2013

Start Saving