Let Your Money Work for You with a Savings Account 

There are many reasons Americans do not save money.  Maybe we feel we have plenty of time to save later, or that we already waited too long to start. Yet, if we started saving today, we will have more money tomorrow.

Starting a savings account is a first step to taking control of your financial future.

You might decide to save for a specific reason such as a car, home, or education. Setting aside money on a regular basis can help achieve those goals.

“I can’t afford to save,” is another argument against saving money.

Try taking careful note of how and where you spend your money. You will be surprised to learn that by doing without certain things you can save quite a bit. If you spend $1 each day on a cup of coffee, that adds up to $365 a year.

Earning interest

Banks pay you to let them use your money. They pay interest on your money. Earned interest can give you a good start on your savings plan

Then there is the power of “compound” interest. You earn interest on the money you save. You also earn interest on the interest your money earns. It is letting your money work for you.

Many people find it easier to save if they allow a bank to take money directly from their paychecks and deposit it into savings accounts.

You might make a rule that you will always wait 24 hours to buy things that are not necessities. You might decide you do not want those things. You could save your spare change at the end of the day. It adds up quickly.

Opening an account

Requirements to open a savings account vary. You need to provide: Proof of your identity in the form of a driver’s license, state identification card, or county ID. You also can use your Social Security card or a check stub with your Social Security number on it.

Most banks require a minimum deposit ranging from $50 to $100. They might require you to maintain that amount.

Some banks charge a fee for exceeding a certain number of transactions per month, $5 to $10.  Some might charge you $1 or $3 a transaction for using their ATM machines.  Shop around for banks with the lowest fees and any special offers that eliminate some fees.

Saving money can help you handle emergencies. It will make you feel better about your financial situation. It can teach you healthy habits on handling money.

Source:  Federal Deposit Insurance Corporation