Savings accounts are the best way to put away a set amount of money each week or month, depending on your circumstances. You'd be surprised at how quickly it can add up if you're contributing a set amount from your paycheck each payday.
The convenience of having money automatically withdrawn from your paycheck and placed in your savings account is great for some. However, others may want to contribute a set amount each payday and may want to choose how much they deposit in their savings account.
The best type of savings account will pay a competitive interest rate, be easily accessible to your home or work, will not charge a fee for account withdrawals 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 account. You should avoid money transfers from this account unless it is an emergency. Otherwise, it defeats the purpose of having the savings account in the first place.
Some types of savings accounts are geared towards the holiday season. This allows you to save money for Christmas. If you start 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 account links 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.
Savings accounts are great ways to get your children learning how to be responsible when it comes to money. Open a savings account and let them deposit birthday money or Christmas money for themselves. All the change that gets thrown in a jar every day can become a savings account 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.
Another advantage to a savings account is establishing credit. If you borrow money from your bank using the money in your savings to secure the loan, when you repay the loan, 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 a savings account and add to it regularly. In the event of an unexpected expense, having the money to cover it without having to borrow is a great feeling. Ask your bank for your best savings approach!