Did you own a piggy bank as a kid? Piggy banks are a great way to save money for kids. Kids know how to save money, but sometimes we don’t even save money ourselves! We can learn a great lesson from kids that learn how to save through using piggy banks. We need to learn how to save money and one of the first steps to saving money is to open a Savings Account, which is like a piggy bank for adults! Here are 4 reasons why you may want to open a Savings Account. If you want to open a Rewards Checking Account, you should look at our review of one of the “Discover Online Savings Account!” It has a great reward system and is worth the look.
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1. You Can Earn Interest
One of the greatest benefits of having a savings account is that you get to earn interest on your funds. Money that is put into a savings account can increase with value over time. I don’t think Piggy Banks can do that! Most banks will pay you an interest rate/APY for keeping money in their savings account. A higher interest rate or APY will mean that your savings will increase at a higher rate!
2. Grow Savings Without Fees
Banks often charge monthly fees for going under a certain threshold of balance. For example, a bank may charge $10 per month for having less than $1,000 inside the account. Manage your online savings account to be always above the minimum balance for avoiding monthly fees and you’ll be on your way to earning interest on your funds without it being taken away by fees!
3. Easy Access to Funds
While you’re accruing interest on your funds, you may run into emergencies. Don’t worry, an online savings account can help you. The money in the account, for most banks, is easy to withdraw. If you have a medical emergency and need money to pay for it now, you can withdraw money from your savings account and pay for those expensive medical bills. Your online savings account can act as an emergency fund for whenever you need it.
Now, don’t go withdrawing money from your account all the time, it is still a “savings/emergency fund” and should have as much limited use as possible. For savings accounts, banks charge withdrawal fees if you withdraw money too many times from your account. Additionally, if you withdraw money, make sure to also comply with the monthly service fee waiving policies at your bank to avoid getting charged! Going under the minimum balance after withdrawing money can subject you to the bank’s monthly service fees.
4. Set Up Automatic Deposit
If you have to remind yourself or forget to save money, then an online savings account can help you save by allowing you to set up automatic deposits into your bank account. Talk with your bank and find out how you can automatically send money to your savings account without having to do anything. This will help ensure that you are always saving money. You may want to set up an automatic deposit every time you get a paycheck. If you want to save 20% of your income, tell your bank to deposit 20% of every paycheck you get into your savings account. You won’t have to worry about having to send it yourself and it will help manage your budget!
Author’s Verdict
A great way to invest into your future is to open up an online savings account. Online savings accounts can help you budget your finances, save money, and even make money. Savings Accounts have interest/APY rates that banks pay you for having money at their bank. You are going to need the money that you put into your savings at some point. Use your savings account as an emergency fund and have money available for the times you absolutely need funds like for medical emergencies or essential home or car repairs. At any bank, be careful to not withdraw too much money or go below the monthly service fee waive minimum balance! If you are interested in opening up a savings account, you should look at our review for the Discover Savings Account. They offer a strong interest rate of 1.50% APY and have no monthly fees!
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