So, you want to start saving for your future and your family’s future but need a safe place to put the money. A good savings account is always a good idea as it allows you to earn back a bit of interest. You likely won’t make much money through the interest, but every little bit will add up over time. You won’t get anything back at all if you stash cash away in your home. Plus, there is always the possibility of it getting stolen.
On the other hand, banks and credit unions are very secure, and your money will be backed up by the federal government (usually up to $250,000). You have nothing to lose and even a bit to gain by opening an account at a top online bank.
How much should you save, exactly? Financial advisors usually recommend saving 3 – 6 months’ worth of family expenses and putting that money in a good savings account. However, to continue getting a high APY%, some banks might recommend that you continue contributing to that savings account as time goes by.
People have savings accounts for various reasons. Some want the peace of mind that the money is there in a safe place just if an emergency occurs. Some want to save for a particular purpose, such as college for their kids, a new house, dream vacation, dream car, enough money to start a new business eventually, etc.
If you want to save for retirement, you should have a retirement account that you keep separate from a family savings account.
Good Savings Account Advice for APY and Management
A good savings account has a high annual percentage yield (APY) of 0.50+, although that’s not the only important thing. Customer service, fees, and security protocols are critical as well. Choose an online bank or credit union that will offer you easy access to your account. Also, there should be at least three allowable transactions at no-cost per month. If a particular bank has fees that seem unnecessary or higher than they should be, avoid it.
The process of opening an account should be easy. Usually, you’ll need to provide the necessary personal info such as your social security number, check or routing number from the other bank you’ll be using for the funds, and a valid photo ID. Before providing these, review and make sure that the particular bank has high-security and privacy protocols in place.
Which bank is most ideal for a good savings account? CIT Bank is one to start looking into first, as it offers good customer service, privacy and safety, and 0 unnecessary fees.