Why You Need Savings Accounts
Savings accounts are the best idea for putting away a set amount of money each week or month depending on your circumstances. You would be surprised at how quickly this money can add up if you are contributing a set amount from your paycheck every payday. This will lead to great Money Management on your part.
When shopping around for the best savings account, find one that pays a good interest rate and has a minimal amount for opening the account. A lot of banks only require a dollar to open an account while others may want you to deposit anywhere from 5 dollars to 50.
What You Need To Know About Savings Accounts
The convenience of having money automatically withdrawn from your paycheck and placed in your savings account is great for some. However others may not put a set amount in each payday and may want to choose how much they deposit into their savings account.
The best type of savings account will pay a comparable interest rate, be easily accessible to your home or work, will not charge a fee for withdrawals from your account, has on-line availability, and does not require a large deposit to open.
If you have a bank account and access it online you should be able to transfer money to and from your savings accounts. You should try not to transfer from it unless it is an emergency because this defeats the purpose of having the savings accounts in the first place.
Christmas Club Savings Accounts
Some types of savings accounts are geared towards the holiday season. This allows you to save money for Christmas. If you start it early enough in the year by the time Christmas rolls around you can have a nice amount for your holiday shopping.
Another type of savings accounts featured by some banks link your debit card with your savings account. Every time you make a purchase using your debit card the amount is rounded up to the next dollar and the extra is deposited into your savings account. Some of these banks will even match the amount deposited by a certain percentage.
Children and Savings Accounts
Savings accounts are great ways to start your children out learning how to be responsible when it comes to saving money. Open savings accounts and let them deposit birthday money or Christmas money for themselves. All the change that gets thrown in a jar every day can become savings accounts deposit for them. They will love to go to the bank and deposit their own money and in the process you are teaching them the importance of saving.
Savings Accounts Can Help Establish Credit
Another advantage to savings accounts is establishing credit. If you borrow money from your bank using the money in your savings to secure the loan, when you pay the loan back you will have established credit with your bank. This can make it easier to get an unsecured loan should you need it.
It is important to have savings accounts and add to it regularly. For that unexpected expense that crops up, having the money to cover without having to borrow the money is great. With everything today being based on credit-worthiness, establishing a good relationship with your bank or credit union can make a big difference when it comes to buying a home or a car.