Saving Accounts 101

Posted on | April 5, 2010 | No Comments

A savings account is accounts that is maintained by banks and are easy ways for you to save money without risking losing your money by other means such as fire or robbery.

Why Do You Need a Savings Account?

Many people open savings accounts for saving money. Setting aside a small amount of money into a savings account is a great way to save for a family vacation, a new car, money for college, or money for retirement. No matter what you want to save for, a savings account is a great way to go.

Choosing a Savings Account

When choosing a savings accounts, there are many different things to consider. Some of these things include choosing a bank that has the services that you need and want and comparing interest rates, minimum balance requirements, and fees that may incur during your account’s lifetime.

How to Open a Savings Account

When you are ready to open a savings account, you should choose a bank in your local area to open your account with. Things you will need in order to open your account is proof of your identity. This would be your state driver’s license or identification card, and a social security card. You will have to fill out an application and some banks require a deposit to be made into the account in order for it to be opened. Some savings accounts can be opened for as little as one dollar.

Why is Your Money Safer in a Savings Account?

There are many facts to consider when choosing to put your money in a savings account. You money is much safer in a savings account than if you stick it in a sock and put it in your dresser where if you were robbed or your home burned down it would be lost forever. In a savings account ,your money is insured up to $100,000 through the Federal Deposit Insurance Corporation (FDIC). This simply means that even if a bank goes out of business, you will not lose your money that was in the account. The federal government created the FDIC in the 1920s to make sure that people did not lose their money incase a bank went out of business. This was a huge problem within the Great Depression.

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