For many Americans, budgeting and saving are two words that are “easier said than done.” In a recent article published by U.S. News, nearly half of all American’s save less than 5% of their annual income in long-term savings.
However, budgeting and saving can help you achieve financial freedom and alleviate financial stress for you and your family. Opening a savings account is one of the first steps toward achieving financial success. Most savings accounts not only offer a safe place for you to keep your money, but also include incentives and benefits. To discover which savings account option is right for you, consider the following questions:
- What are your savings goals? An example of a long term goal would be saving for retirement and a short-term goal may be to save for a new car in a few months. Short and long-term savings goals are important to know as they help you determine many of the answers to the next two questions…
- How large of a balance do you want to carry? There are minimum required balances on many savings accounts, as well as limitations on earning interest at certain balance levels.
- How accessible do you need your money to be? Remember, this is money that you may need in an emergency, so the more accessible the better. ATM accessibility or the ability to make transfers through online banking or mobile banking are things to look for.
- What services are included? Additional services like online banking or mobile banking that add convenience are a bonus.
- What fees go with this savings account? Withdrawal limit fees, minimum required balance fees, transfer limit fees and other fees may apply, so be sure you know which could apply to you.