2 What is a Savings Account? A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.the interest on your money is compounded daily, so your balance grows faster.
3 What does it do? Keeps your money safe Earns interest Keeps you informedHelps you avoid fees
4 What are common problems people have with savings accounts? Not using direct deposit to transfer money into a savings accountYour savings are tied up in investmentsYou keep your large Sums of cash as savingsYou see savings as a choreUnderestimating Your emergency funds
5 What other options do you have if you do not want to use a savings account? You can open a checking accountYou can keep money at your house
6 How do you open a savings account? You need your social security numberSome form of I.DIf required minimum amount required by your bank for a initial deposit to start a savings account
7 Where Do You get A Savings Account? You can get a savings account at your local bank.
8 Different Types of Savings Account Regular Savings AccountOnline Savings AccountMoney Market Deposit Account
9 Regular Savings Account Almost all banks offer a regular, basic savings account that you can sign up for in person, by phone or online.The difference between this account and a checking account is that it generally doesn't have check-writing privileges.It may have a higher opening deposit requirement.It may also have a higher daily minimum balance requirement.
10 Online Savings Account An online savings account differs from a regular savings account in that you deal with it exclusively through the internet (sometimes also by phone)It pays interest at a higher rate.One drawback of these accounts, aside from not being able to deal with them in person through a bank teller, is that in some cases, it may take longer to get access to the money in an online savings account.
11 Money Market Deposit Account The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded.The money market is typically seen as a safe place to put money due the highly liquid nature of the securities and their short maturitiesMoney market deposit accounts tend to have higher minimum balance requirements than regular or online savings accounts.This minimum usually ranges from $100 to $2,500.