If you are trying to get better about saving your money and keeping it safe for the future, opening a savings account is a smart move. Here are just a few reasons why.
Savings Accounts Are Secure
If you’re concerned about financial safety, you’ll be happy to know that most savings accounts are safe and fully insured. Granted, you’ll still need to open an account with a reputable financial institution, but as long as you go through a bank that is insured by the Federal Deposit Insurance Corporation, you can be reasonably sure that your money will be safe. The Federal Deposit Insurance Corporation or FDIC ensures all bank deposits up to $250,000. According to the FDIC, no customer has lost any of their deposits since the organization’s creation in 1933. Any bank that is FDIC-insured will be up-front about this information, so don’t be afraid to ask before opening a savings account.
Managing a Savings Account Requires Little Effort
Another reason to open a savings account is that managing one doesn’t require a lot of effort. You should be conscious of how much money you have in any account, but anything you deposit starts earning interest immediately. As long as you have enough money in your savings account, your funds will grow, especially if you have an account with a high-interest rate.
Savings Accounts Have Few Restrictions
Finally, there are relatively few restrictions associated with opening and maintaining a savings account. Each institution has its own rules associated with maintaining an account, but these are all fairly reasonable. Most banks require you to maintain a minimum balance or to have a minimum initial deposit, but aside from that, you should be able to open a savings account as soon as you turn 18. You’ll also most likely have several ways of withdrawing your money, such as taking out cash at an ATM or getting a cashier’s check or money order directly from the bank. These services will vary from one bank to the next, so make sure you always confirm the requirements for each service before opening an account.
While you should always do your homework before opening an account with any bank, having a savings account is almost always a smart move. It allows you to accumulate interest while your money is kept safe, and you will be able to make withdrawals whenever you need them. Contact a bank or credit union near you to learn more about how you can open a savings account of your own if you don’t already have one.