A savings account is when you keep
your money in a bank or credit union and earn interest.
Interest is the money the bank pays you for keeping
your money there.
A savings account is a safe, convenient
and affordable way to save your money. It's much safer
to keep your money at a bank than to keep a large amount
of cash in your home. When you put your money in a bank,
the bank keeps it in a fireproof locked safe. The federal
government also insures your money. No matter what,
you can't lose your money when it's in the bank.
Banks pay you a fee, called interest,
for keeping your money with them. The higher the interest
rate, the more money you'll earn. And, the more money
you put into your account, the more money you'll earn
in interest. Automatically transferring money from your
checking account to a savings account each payday makes
paying yourself automatically much easier.
Before choosing bank ask these questions!
the institution insured?
is the dividend/interest rate?
the annual percentage yield (APY)?
the institution offer tiered rates? If so,
how are they applied?
often is interest compounded?
is the minimum balance required?
there a charge if my account falls below
a minimum balance?
there a fee for closing the account?
there a monthly maintenance fee?
I required to use direct deposit in order
to get a free account or reduced fees?
there a limit on the dollar amount or number
of transactions I can make?
there any other fees or charges for the account?
If so, what are they?