SavingsAccounts

Bank Savings Account

A bank savings account is one of the most reliable, secure methods for making your money grow. When you make regular deposits in a savings account through a reliable bank, you can count on seeing your funds accumulate over time. The interest you earn on your savings will increase the value of your initial deposit, which means that your money will acquire more value the longer you leave your funds in holding. These accounts help you establish strong saving strategies and contribute to your financial security.

With a traditional bank savings account, you have easy access to your funds in case of an emergency. A savings account at your local bank is one of the best ways to build a reserve for unexpected expenses. If you need cash quickly to pay for a plumbing repair or an unanticipated health related expense, you can withdraw money at an ATM or at your neighborhood branch. Your bank may limit the number of withdrawals you can make each month, so it's important to review your financial institution's rules on minimum balances and withdrawal fees.

Choosing a Bank

When you're searching for a financial institution to house your bank savings account, the institution that handles your checking account may be a smart choice. With your savings and checking accounts in the same institution, you can schedule regular transfers from checking to savings whenever you get paid. Automatic withdrawals allow you to save money before you have the opportunity to spend it. In addition, you may receive a bonus or other incentive for opening a bank savings account with the same group.

Many banks and credit unions offer special bonuses as incentives to encourage new customers. Banks may offer higher interest rates for the first few months, which can result in higher earnings for a period of time. However, these discounts may require a higher opening deposit. Banks may charge customers a fee for letting their balance fall below a minimum amount, or for making more than the minimum number of transactions each month. Look for a financial institution that imposes few fees and penalties on its services, so that your earnings on interest aren't eroded by extra charges.

Reliable banks are insured by the Federal Deposit Insurance Corporation, or FDIC. The FDIC keeps the banking industry stable and safe for consumers by insuring your deposits up to a certain amount. If the financial institution fails, the funds in your bank savings account will be secure. A reliable institution has a strong financial history and values the security of its customers' money. However, in today's fluctuating economy, it can be impossible to predict some of the ups and downs of the banking industry.

Online Savings Account

Increasingly, banks are establishing internet-only accounts for their customers. These options offer 24-hour access to your funds, few transaction fees and the convenience of conducting your banking transactions in your home or office. Internet only accounts also offer attractive interest rates on your deposits, often exceeding brick-and-mortar banks. If you're already doing a lot of your banking business online, an internet-based account may be ideal for you.

Before you transfer all of your banking to an online account, look for any restrictions or limitations that might interfere with the way you pay your bills or make your deposits. With some online groups, depositing a paper check can take longer than accomplishing the same task at a brick-and-mortar bank. If you make a lot of cash or check deposits in your current saving fund, a bank savings account online may interfere with the way you normally manage your money.

High Yield Bank Accounts

A high yield bank savings account may be a desirable option if you have a large sum to deposit. High yield accounts typically require that you maintain a fairly high balance and make a limited number of withdrawals each month. If you're able to make a large deposit and you intend to leave your funds in holding for a longer period of time, consider a certificate of deposit, or CD, for higher interest rates.

CDs are time-limited funds that accrue interest at a steady rate over their maturity period. A CD may require anywhere from several months to several years to mature, depending on your arrangement. During that time, your interest earnings are higher than the average bank savings account because the organization has access to your money for an extended period of time.

A traditional bank savings account can be the answer to your need to maintain a flexible, liquid fund to cover emergencies or save for future goals. Making your money grow requires time, patience and a few changes in the way you manage your budget. Use the free features on our site to compare the advantages and potential earnings of different funds.