Tips On How Save Money with These Four Bank Accounts

Tips On How Save Money with These Four Bank Accounts: Deciding to start saving is the first step toward creating a solid financial future. The next step is deciding where to put your savings. Check out these four savings options for your hard-earned money. Once you’ve decided which type of account to open, arrange for direct deposits from your paycheck and “set it and forget it” to build your savings consistently and quickly. Then, sit back and watch your savings grow.

Editor’s Note: Interested in finding the best interest bearing accounts for you? Be sure to check out our compiled list of the best bank rates!

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Tips On How Save Money with These Four Bank Accounts

1. Savings Account Tips On How Save Money with These Four Bank Accounts
   • Savings accounts offer a safe place for you to keep your money and earn some interest. Find the best high interest savings account or high yield savings account by comparing features such as APY, fees and promotions.
   • Decide if you’re willing to explore the world of online banking. You can often earn a higher interest rate with an online savings account because online banks don’t have the same overhead costs as brick-and-mortar banks and they typically pass those savings on to customers. If online banking worries you, it might give you peace of mind to know that the FDIC insures your money for up to $250,000 in case the bank fails.
   • Many free savings accounts are available, so do your homework and find one that’s right for you. Look for an account that doesn’t charge monthly fees or for using an ATM and start making deposits as often as you can to build up savings even faster.
   • See our section on the Best Savings Account Rates.
2. Certificate of Deposit Tips On How Save Money with These Four Bank Accounts
   • If you don’t plan on withdrawing your savings for a while, you can often get a better interest rate by putting your cash in a certificate of deposit, allowing you to grow your savings more quickly with higher interest. Because there are early-withdrawal penalties associated with CDs, it’s essential that you don’t use the money until the CD matures.
   • “CDs are deposits that are held for a specific period of time, such as six months, nine months, one year and longer,” said Stephen Fournier, market president and regional retail leader at KeyBank. “It’s important to remember there are penalties for withdrawing money from this sort of account before the specific time period expires. These accounts earn interest throughout the time period and tend to have higher interest rates than typical savings accounts.”
   • See our section on the Best CD Rates
3. Money Market Account Tips On How Save Money with These Four Bank Accounts
   • Consider a money market deposit account instead of a regular savings account if you like to write a few checks each month. Money market accounts pay interest, and you can usually write checks and access the funds with a debit card.
   • You can withdraw and transfer funds in these accounts only within federal transaction limits, however. Government regulations limit the number of checks you can write to six per month, but your bank could further restrict you — and charge you for additional transactions.
   • “Money market accounts usually offer higher interest rates than regular savings accounts, but they might come with more restrictions,” said Fourier. “These accounts often require higher minimum balances than regular savings accounts.”
   • See our section on the Best Bank Rates.
4. Holiday Savings Account Tips On How Save Money with These Four Bank Accounts
   • Some banks offer holiday savings accounts that enable customers to save money throughout the year for holiday spending. Use direct deposit to save money faster and watch the interest accrue. When the holidays roll around a few months later, you can access the money quickly and enjoy shopping without worrying about spending.

Author's Verdict

Tired of living paycheck to paycheck or having very low funds available? It's important to have an emergency set of funds in the case something happens that's out of control. Hopefully our post on Tips On How Save Money with These Four Bank Accounts helped you. If you don't have a savings account, see our best savings account section. Looking to add a little extra income each year? If so, see our list of the best bank deals, bonuses, and promotions!